Dear Traders, the market has been little choppy lately. So what to do when the market is choppy and how to extract your 3% for the month?
Below are my techniques that have worked to re-set the success momentum:
Take a step back and give it a break
It is always a good idea to stop – revive – survive. This strategy works for the forex markets. I have noticed that if a trader gets on a losing streak inevitably they feel the hit and as a result do one of two things i.e. they trade even more aggressively or they get disheartened and completely switch off. Both of these approaches are not conducive to a positive mind frame and future profitability. A more useful approach is to stop trading for a set period of time e.g. 1 full week, while keep studying and watching the market just choose not to trade. After the full week, recommence with a fresh approach and a clean slate!
Get back to basics
You can never go wrong with this strategy. I have noticed that many of my new students tend to make fantastic percentage gain with a high win/loss ratio. And then something happens…maybe the life gets in the way or the old habits creep in! whatever it maybe at this time it will pay off to get back to basics. Pick up your manual and go through the notes that you took in your very first course and check that awesome ‘Trading Plan’ that you used to follow diligently and revise your approach.
Trade with the trend
In a choppy market stay away from the sideways movement. There are specific strategies combined with a lot of experience that could work however my suggestion is that if you don’t see a specific pattern that you are looking for to trade – don’t!
The best way to get your 3% from the market is find the trending pair and trade on the bounce while matching it to your momentum indicator (Stochastic or Macd).
RE-Set your mental attitude
What I mean by that is to keep your cool and not reject the system completely. As you been taught that no system works consistently in all sorts of markets even though you may keep getting the signals on SmartCharts. The best strategy is to get back to basics and if you are not sure what to do. I suggest you book a coaching session with your coach.
Get a strong peer group around you that lifts you up
How does your peer group effect you? It has been researched and stated that your income is a result of your 5 closest friends you socialise with the most. Why don’t you take a test and calculate if it is true for you? I don’t mean that stop being friends with people just because of their income but rather find people who have a money blueprint of abundance that you want to embody within yourself. Success attracts success therefore it will help your trading as well to hang out with people who believe that mega-results are possible and whose perception of money is ‘unlimited and resourceful’.
Last but not least I want to remind you that the market is random and therefore your state of mind is the most important ingredient that fetches positive results for you. Please refer my previous article Improve Your Trading Mindset for a simple technique to use before each trading session. This will help you stay on track and produce successful results in your trading as well as in your life.
Till next time
Stay prosperous and fulfilled
Psychology of Trading Specialist
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