Trade With Precision Newsletter - Psychology

When it all comes down to it, the decision of whether to take a trade or not, impacts directly on your trading results. It's an area of trading which can cause allot of emotions as it decides whether you enter into a trade or not. If a trader can make consistently sound decisions on whether to enter into a trade or not without emotion then consistent results from their trading edge can flow. Inconsistent decisions on the other hand, lead to inconsistent results. Let's run through the 3 key aspects of trading decision making which you must apply to your own trading.  

Risk control should be at the forefront of a traders mind at all times. Traders need to be continually aware of what their exposure is to any product at any time, just as a scuba diver is aware of how much air they have left in their tank. Traders without stringent risk control procedures in place, risk losing all of their trading capital. Too often we see traders come to us who are far too focused on how much they are going to make rather than how they are going to ensure they control their downside.

Yes, that’s right; the daily chart should be the chart in which you focus most of your attention on as it forces you to see what’s going on in the big picture! Starting out looking at charts can be so daunting as there are so many different timeframes in which you can view so it’s hard to know which one to focus on. Let us make it simple for you – Focus your attention on the daily timeframe first!

“Can I still trade the markets around my day job?” is a question which we get asked all the time. The answer is always a resounding YES! The trick to successfully trading the markets while holding down a day job is to structure your trade scanning routine to work with a limited amount of time. We thought we would help you all out by outlining a scanning approach for those people with limited time on their hands.