There are very important things to give up if you want to be wealthy trader. We get so caught up in adding to our trading arsenal with knowledge, books, chart patterns, indicators, moving averages, gurus, securities for our watch list, and whatever else we think will help us make money. But we forget to remove what doesn’t work from our trading routine.
One of the most important factors in determining whether a new trader becomes a successful trader is their ability to filter out what does not help them make money. Knowing what is noise and what is the source of profits is a skill in and of itself. You can’t follow every indicator, trade every method, and add to your trading methodology indefinitely; you have to make decisions and know what does and doesn’t help you make money. A trader must first identify the behaviours that cause them to lose money, and then abandon those mental habits and ineffective trading tools.
Here are Things to Give Up if You Want to Be A Wealthy Trader:
Allow yourself to let go of your need to be right.
Do not strive to be correct in your predictions and opinions; instead, strive to go with the flow of the market.
Give up your emotional connection to every tick of your trade’s price movement.
You have no control over the movements of a live stock stream no matter how long you watch it. Save your emotional energy by avoiding getting caught up in every price tick and cheering on your positions. Everything else is in the hands of the trading gods except for entries, exits, and position sizing.
Stop blaming “They” for your failures.
There is no mysterious ‘They’ causing you to lose money; instead, your decisions are the cause of your losses, or your system simply had a losing trade. If you traded differently, you could be on the same side as ‘They.’ It is a free market and a free country. The majority of large hedge funds would perform much better in the long run if “they” had complete control.
Allow yourself to stop berating yourself for losing trades.
In a losing trade, if you followed your trading plan, you should have no regrets. If you didn’t stick to your plan and lost, consider your money as tuition; you’ve paid your dues, so mentally and emotionally move on to the next trade.
Give up your personal viewpoints.
If you entered a trade based on your own opinion, you must give up that opinion and exit if the trade moves to a point where you are proven to be incorrect.
Allow yourself to let go of your inability to change your mind.
The more you believe a trade can’t go wrong, the riskier it becomes. It will cause you to make large trades and stay in for too long. You must always be prepared to make a mistake.
Stop replaying your previous trades.
Each trade is a new trade, so don’t hold grudges against stocks or believe they owe you money for losses in the past. Don’t fall in love with a stock and hold on to it as it plummets.
Don’t let your trading determine your self-worth.
Allowing your trading to define you is a mistake. Friends, family, hobbies, and other interests can help you to broaden your horizons. It’s not a good idea to become too fixated on the markets.
When your stop loss is reached, quickly quit losing trades.
Your best trades will be those that are profitable right away. If they go against you right away, expect to be stopped out. When you start chanting “It will come back, I just have to wait” in the middle of a death spiral, you risk destroying your trading account.
Allow your winners to run as far as they can.
Trends can reach unbelievable heights in the right market conditions, and big wins during these trends can make your entire year profitable if losses on losing trades are small. If you set a predetermined profit target, you will miss out on the big move when it occurs. Allow yourself to be led out by a trailing stop.
Rather than giving up trading, you should give up these Things to Give Up if You Want to Be A Wealthy Trader.