Are you facing issues with your trades?
Here's a nine-step method that can help solve your trading problems.
The following steps were extracted from Brian Tracy's book, "No Excuses!"
1. Clearly Define the Problem.
In medicine, it is often said that "an accurate diagnosis is half the cure of any medical problem."
Similarly, in trading, it is crucial to look inward and ask yourself, "What exactly is the problem with my trading?"
The issue with your trading may be human-based errors, which are the result of conscious actions.
These errors include cutting winners short and letting losers run, failing to manage risk, lacking a predetermined entry and exit plan, not setting stops, and continuous FOMOing.
2. Ask yourself, "Is It A Problem?"
There are things you may think as a problem but they are not.
For example, your trade-hitting stops shouldn't be a problem.
IMO stop loss is an act of insurance, you don't wish to be wrong but you just have to stay safe.
Also, a downtrend shouldn't be a problem. It's part of the market cycle, and there is nothing you can do about it.
Identify the problems you can solve and let go of the ones above your control.
3. Ask yourself. "What Else Is The Problem?"
Beware of any problem for which there's only one definition. The more ways you can define a problem, the more likely you find the best solution.
For example.
'What is the problem?' I tend to FOMO a lot.
'What else is the problem?' I tend to go long only when the market is green.
'What else is the problem?' I see myself entering only moving trades.
From the above, one can be easily solved.
4. Ask yourself. "How Did This Problem Occur?"
Understanding the cause of a problem will help you to avoid it even before it starts again.
If it's a repeated problem, it means there's something you are NOT doing or doing wrongly.
5. Ask yourself. "What Are The Possible Solutions?"
The more possible solutions you can develop, the more likely you will come up with the right one.
For instance. "I tend to cut winners short and let losers run" is the problem.
Soln 1: Set your TP and Stops in every trade.
Soln 2: Never extend your stop loss level.
Soln3: Only extend your TP while locking in profit, technically.
6. Ask yourself. "What Is The Best Solution At This Time?"
An average solution rigorously executed is often superior to an excellent solution not implemented.
Thus, Do a few things well, and perform them often and consistently.
7. Make A Decision.
Now you have a solution. Decide to do it immediately.
8. Take Responsibility.
The market is the market, and it's neutral. It doesn't care about you. It cares not about your losses, wins, or mental health.
Take responsibility for your actions. Yourself.
Your losses you learn from, your mistakes you correct them. Your wins are the desired results.
9. Set A Measure For The Decision.
What are you trying to accomplish with this decision, and how will you measure your results? How will you know that it's working?
The more accurately you can determine the result that you want to achieve by the solution, the more likely it is that you will achieve it.
You can read the unrolled version of this thread here: typefully.com/AB_Bitcoin/zAoVQmn