Building a Trading Confidence in yourself

By: Rick Williamson

Is your great system losing you money? You have put countless hours researching your system. Your satisfied with your picks and have spent weeks of paper trading. Your doing it by "the book". Your full of confidence.

Now you put you money to work for you. You do understand that at times you could lose and on your first money trade you do lose. You know that successful traders both win and lose. Moving to the next trade you lose again. This one hurt a bit as you jumped out to soon and the market rebounded and would have hit a profit for you. Next day you try again with your new daily trades in front of you. Hey, this one looks really good. A little bit more risk than yesterday's trades had, but it has profit potential. So the trade is executed.

You're feeling good about this trade and you've moved your stop to break even, just like your system said. A surprise piece of news blows the market through your stop into an loss position. Your thinking, something is wrong with the system. You wonder if this works at all. Your confidence turns to doubt.

What's happening is that you are out of control. Your emotions are affecting your trading. This happens to every trader from time to time. The winning trader senses what is happening and puts it to rest. The profitable trader works daily on the discipline of trading. He may read a chapter in his favorite psychological trading book. He knows he must control the emotional part of himself in trading.

There are many more losing traders than winning traders and it's seldom about your trading system. There are many trading systems that are very good. Yet I know for a fact that there are many traders that have traded on these systems and lost. Why? They were not in control of their emotions.Control this part of trading and you will see great gains.

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