6 ways to improve your trading and life (part 2)

6 ways to improve your trading and life (part 2)

In this second part of the blog on six ways to improve your trading and life, you will see how you can improve your trading performance by doing things in life, that are outside your trading, but they have a big impact on your discipline, patience and self-control. Every successful trader knows, that these characteristics are necessary for profitable trading, so do everything to be disciplined, patient person with strong self-control.

Capital risk & financial security

Money is the main motivation behind trading and speculating in the markets. A lot of traders try to create something out of nothing, and that is why most of them fail. It is much easier to make 10% or 20% return in a year than trying to make a 1 000% in one month. Most of the time smaller the capital, the higher the risk traders undertake. Higher the risk per trade the bigger the stress and it’s always hard to make important decisions under the pressure. It’s important to stay objective while making trading decisions and that is where big players win very often. As they have a big capital, they don’t need to trade with high risk, and as a result, they make better decisions.

Imagine having 300 € in your bank account (it’s few days before your pay-day) and 3 000 € in a trading account. If a normal retail trader risks 1 to 3 percent per trade and opens 3 trades, it’s possible to have a loss equal to what you have in a bank account in only 1 day. That can be very stressful. This is how a lot of retail traders trade and that is why they lose in a long-term period. On the other hand, imagine having 100 000 € in your trading account and 1 000 000 € in a bank account. The fact that you have enough money to survive for a long time without making a single trade has a positive impact on your mind and the level of stress is low even if you’re losing money.

Proper habits

Discipline is one of the most important virtues of a successful trader. Being disciplined in life affects your behavior while trading. That means if you regularly do some sport, eat healthy, have a sleep habit, etc. you are doing everything to be physically, psychically and emotionally ready for your trading. As you may know, it’s very important to be calm, patient and disciplined while trading and that’s possible through proper habits outside of your trading. Imagine yourself as a soldier who must listen to a general and in this case, the general is your trading plan. Traders are often attempted to cheat on their trading plan because of fear, greed or other emotions. Try to avoid that by having proper habits and if you break the rules give yourself a little punishment which will force you to be disciplined.

Guessing & betting

Don’t get us wrong. We don’t suggest direct betting on soccer matches, etc. It’s about having some sort of guess every time you can. Somebody asks you: guess how much money I made last month? How many inhabitants does Vienna have? Do you think it’s going to rain today? The fact that you dare to guess gives you a boost in confidence and you are making your guessing skill better every time you try. It’s not about being right. It’s about try and fail just like at everything in life. Of course, you must have a trading plan and stick to it, but it’s useful to have a guess when you need it. If you guess regularly, your intuition gets better too. There is no need to make money bets but guess or bet on everything you can. When you get better, people will be surprised and notice how good your guess sometimes is.

Conclusion

What should you take from this blog? Well, trade only with the money you can afford to lose and don’t feel stressed about it. The level of stress will be lower when you will have more money in your bank account than in a trading account. Do things in your life that are outside trading and have a big impact on it. Do things that make you more disciplined, patient and emotionally calm. Every time you get a chance to guess or bet on something and it doesn’t cost you any money, do it. Over time your guess will get better and your intuition stronger.

2018-09-18T06:47:09+00:00

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close