I am a great proponent of utilizing your intuition, instinct and ‘gut’ feelings.
However, In trading – and day trading especially, your instincts can be wrong most of the time
almost all the time when you are trading scared or under pressure. Your instincts will be wrong when you are feeling emotional and you are ‘second guessing’ your rules or your plan.
When you look back over a period of time and ask yourself ‘If I had done the opposite of what I did do in the last 1-2 weeks, or if someone had tricked me into buying a put instead of a call or a call instead of a put – ‘my trading account would have done wonderfully!’
What does that tell you?
It does not tell you that you are stupid or don’t know what you are doing.
‘So, what does that tell me Karen?
It tells you that you are normal!
Almost all traders have felt like this at some stage in their trading life and it was telling them the same thing as it is telling you NOW.
Trading any market is about human emotion. The markets driver is emotion.
You must have trading rules and a trading plan and most importantly, you must be able to stick to your rules and plan under ALL trading conditions.
Sounds easy huh?
Well, if you have been trading for any length of time, you know that it is easier said than done. Particularly in the early stages of your trading journey.
Once you start trading scared or nervously – you will continue to make mistakes if you do not stick to your trading plan.
When you are trading under pressure – it will feel like you are doing the right thing by veering away from your plan and …» Read more