My journey from a novice to a professional trader was not an easy one. There was no one to guide me and show me the way. There were no mentors who would hold my hand and improve my trading skills.
At the beginning, taking a trade was easy. I would jump to a conclusion, based on my point of view regarding the markets and execute the trade almost in an instant. The result on most occasions was an inevitable loosing trade. Although I did have a few winning trades in between. I continued on with my old trading style, until realization hit me that there was something that I was not doing correctly. If I had to survive in the markets, I would have to take stock of the situation and improve…or I was out.
I began by logging my trades and keeping meticulous records. Within a few days of keeping records, the first obvious fact of my irresponsible trading stood out…I had no rules and market insights for execution of my trades. On further scrutiny of my trading logs I found that I had to make a lot of changes and fill the gaps where my trading was getting affected negatively.
The markets always provided me with illusions of limitless money making opportunities. It was this misconception that one day all will be okay and I will make it big… made me continue on my errant ways. I was opposed to the idea pursuing rules and putting in place the behavioural controls to get the odds in my favour. As a trader I knew that applying market rules and procedures would be a boon for me, but I inherently overlooked the psychology behind these rules. This was not forced on me but came naturally, as my mind did not accept some new thoughts forced on it.
As time went by, I came to terms with the market reality and got a firm grip on exactly how I wanted to approach the markets and participate. I outlined a few areas where I could excel as a trader. At first I took pains to understand the psychology of the markets. Keeping the psychology of the market in mind…
Predominantly I can say that the most important asset, I developed over the years is a trader's mind-set. I realized that with a good mind-set… the rules, guidelines and insights can be applied to trading the markets with ease for unlimited possibilities.
In my own humble way, I have communicated my experience in short on how I changed my trading approach and how I reacted to what the market was thinking. I hope this small article would help you become a better trader and point you in the direction of profitability.
Wish you a thriving existence as a trader.