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- The difference between “why the trader thinks he is losing money” vs. why he is actually losing
The difference between "why the trader thinks he is losing money" vs. why he is actually losing
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Loading...Many traders believe that their current trading strategy does not work and try to repay their losses in error in their system. Then they try to fix things by finding a new system, buying a new training course, trying out a new indicator, and stop searching for the Holy Grail.
Thus, what is happening is that they are trying to correct the symptom, but not the cause of it.
In a very large number of cases, bad trading results are NOT caused by a bad strategy, but by a combination of the following:
- Incorrect Risk Management
- Frequently breaking rules
- Trade for revenge
- Close profits too early
- They leave the losses too long
- They are not well prepared and omitting deals. Either they are in complete chaos and are trying to catch the whole market
A trader who is guilty of the above things does not lose because of his bad trading strategy but because he simply does not trade properly.
He has to return to the very beginning of things and try to understand his trading method. Trading strategy can be properly evaluated only when avoiding the bad habits that create this noise and inconsistency.
And when the trader controls his behavior, it will be clear that his system has never been the problem, and that the losses are caused solely by his mistakes.
Picture: pixabay.com
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