{"id":1434,"date":"2024-05-06T15:44:46","date_gmt":"2024-05-06T15:44:46","guid":{"rendered":"https:\/\/thetalabmarketing.com\/?p=1434"},"modified":"2024-05-06T15:44:46","modified_gmt":"2024-05-06T15:44:46","slug":"reclaim-your-trading-confidence-ways-to-trade-that-avoid-frustration-aggravation-and-self-doubt","status":"publish","type":"post","link":"https:\/\/thetalabmarketing.net\/?p=1434","title":{"rendered":"Reclaim your trading confidence: Ways to trade that avoid frustration, aggravation, and self-doubt"},"content":{"rendered":"\n

Keep reading to discover trading methods to avoid psychological hurdles using recent trading to illustrate\u2026<\/p>\n\n\n\n

We\u2019ve all experienced the difficulty of piecing together a jigsaw puzzle.<\/p>\n\n\n\n

Now imagine attempting that puzzle without ever seeing the final picture. It becomes daunting lacking the guiding vision necessary to piece it together.<\/p>\n\n\n\n

When executed properly your game plan projects a vision of the market\u2019s future movements\u2014eliminating the daunting prospect of trading blindly.<\/p>\n\n\n\n

It\u2019s not some \u2018black-box\u2019 approach you can glean from a book or video. Accurate game planning takes a problem-solving approach<\/strong>.<\/p>\n\n\n\n

Vital for trading success did you know this skill is well-suited to mature individuals as the brain excels at problem-solving in later stages of life<\/strong>?<\/p>\n\n\n\n

Just as surgeons refine their skills by following evidence-based practices, your game plan succeeds by following evidence-based processes<\/strong>.<\/p>\n\n\n\n

The game plan indicated the market would move from the Pre-Pro-Low to the \u2018transition\u2019 at 0.6528, so we\u2019ll trade this scenario.<\/p>\n\n\n

\n
\"Chart\"\/<\/a><\/figure><\/div>\n\n\n

Why not enter now?<\/h2>\n\n\n\n

On the surface it seems straightforward. Trading a movement like the one described is often depicted as entering the market, setting a stop loss and profit target, and ensuring a favourable risk-to-reward ratio like 1:3 or 1:5. Then you\u2019re all set.<\/p>\n\n\n\n

But when you attempt this method, you discover that rewards are few while losses are common\u2014hence the saying, \u201cYou win some you lose more<\/strong>.\u201d Sound familiar?<\/p>\n\n\n\n

If there were a simplified version of trading akin to Monopoly that even grade schoolers could understand, it might look something like this.<\/p>\n\n\n\n

However, trading is highly competitive, like Premier League competition, where profitable strategies are closely guarded.<\/p>\n\n\n\n

What else comes to mind when you imagine a surgeon practising their craft. Precision. Agree?<\/p>\n\n\n\n

Surgical precision also applies to timing your trades. Of the many ways prices move, only specific \u2018price personalities<\/strong>\u2018 enable precise and timely trade execution\u2014much like a skilled surgeon performing a meticulous procedure. But before we dive in:<\/p>\n\n\n\n

Let\u2019s play a game<\/h2>\n\n\n\n

Consider your trade size is 20 lots. For each basis point movement in price, your account fluctuates by USD 200. For instance, a 10-basis point shift translates to a USD 2000 change in your account balance. Looking at the chart<\/a> below, would you enter short now?<\/p>\n\n\n

\n
\"Chart\"\/<\/a><\/figure><\/div>\n\n\n

How about now?<\/h2>\n\n\n
\n
\"Chart\"\/<\/a><\/figure><\/div>\n\n\n

Or should you go short now?<\/h2>\n\n\n
\n
\"Chart\"\/<\/a><\/figure><\/div>\n\n\n

If you\u2019d held your short from the pink arrow, you\u2019d be down approximately USD 1000, a little better than the USD 1600 you were down minutes earlier.<\/p>\n\n\n\n

But it could get much worse from here. Correct? You\u2019ll see what happened in a minute.<\/p>\n\n\n\n

But before you see the trades, in fairness, that was a \u2018loaded\u2019 game.<\/p>\n\n\n\n

Merely showing you a chart gave you as much chance of winning as you have of winning a call of \u201ctails\u201d on the flip of a double-headed coin.<\/p>\n\n\n\n

In the trading below the chart shows the execution precision only in hindsight. But using charts alone it\u2019s impossible to replicate precise entries in real time. I should know\u2014the trades below are mine.<\/p>\n\n\n\n

What observations can you make about the following trades?<\/strong><\/p>\n\n\n\n

    \n
  1. The first short attempt initially moved in my favour before being closed for a minimal loss (1 bps).<\/li>\n\n\n\n
  2. The second trade is a long position\u2014half closed for a small profit and half exited at the same entry price.<\/li>\n\n\n\n
  3. The third trade involves two entries at different prices. When there is no risk of the overall trade losing money, the trade size increases through additional positions.<\/li>\n<\/ol>\n\n\n
    \n
    \"Chart\"\/<\/a><\/figure><\/div>\n\n\n

    Did you notice none of the trades initially moved into the red zone? How much more confident would you be if your trading followed a similar pattern?<\/p>\n\n\n\n

    Why use the approach I do?<\/h2>\n\n\n\n

    I employ an approach that avoids common challenges traders face including:<\/p>\n\n\n\n

      \n
    • It\u2019s consistently effective<\/strong> not just during specific market cycles.<\/li>\n\n\n\n
    • It mitigates significant drawdowns.<\/li>\n\n\n\n
    • It caps losses to \u2018papercuts\u2019\u2014easy to execute<\/strong>, unlike deer-in-the-headlights-sized losses.<\/li>\n\n\n\n
    • It allows you to increase your payout without taking more risk (similar to the trade above).<\/li>\n\n\n\n
    • It relies on evidence-based processes<\/strong> that you can reliably follow<\/strong>.<\/li>\n\n\n\n
    • It demands a continuous state of engagement, reducing the chance of psychological sabotage<\/strong>.<\/li>\n\n\n\n
    • Through its repetitive nature, it fosters self-regulation<\/strong> while organically building your confidence<\/strong>.<\/li>\n<\/ul>\n\n\n\n

      As for the \u2018how,\u2019 that\u2019s where investing in professional mentoring and ongoing reviews comes in to avoid the frustration and aggravation of years of experiencing the challenges mentioned earlier.<\/p>\n\n\n\n

      Trading that has your back<\/h2>\n\n\n\n

      Amid market uncertainties facing fewer challenges naturally fosters a cool and calm disposition.<\/p>\n\n\n\n

      With an evidence-based approach staying engaged and connected to the market becomes second nature.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Keep reading to discover trading methods to avoid psychological hurdles using recent trading to illustrate\u2026 We\u2019ve all experienced the difficulty of piecing together a jigsaw puzzle. Now imagine attempting that puzzle without ever seeing the final picture. It becomes daunting lacking the guiding vision necessary to piece it together. When executed properly your game plan […]<\/p>\n","protected":false},"author":1,"featured_media":1435,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/posts\/1434"}],"collection":[{"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1434"}],"version-history":[{"count":1,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/posts\/1434\/revisions"}],"predecessor-version":[{"id":1436,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/posts\/1434\/revisions\/1436"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/media\/1435"}],"wp:attachment":[{"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}