Pulling the trigger...

This is something that I think that we can all relate to. Here is how the scenario usually plays out, for me at least.

Scenario 1: I identify a good setup and what I consider to be a high probilityof success trade and then I second guess my self and do not put the trade on. I then follow the trade and realized that I just missed out on a lot of money. Usually this happens becuase I may have just had a loosing trade and do not want to loose anymore money so I become to conservative. What I have been learning is you have to have a trading system and you have to be able to pull the trigger everytime it tells you to in order to really make consitent money. Otherwise in the long run the numbers will just not add up.

Scenario 2: This one is even more common for traders, this is not one I struggle with as much as I use to. I have become much more disciplined. So You have a trade idea and identify the high probability setup and come up with a plan as to where to enter, and where to exit the trade if it trades against you or in your favor. You then precede execute on your plan to add the position to your account. The problem comes when it hits your exit price and you do not immediatly get out, resulting in an even bigger loss. Again like I said above you have to get out when your system tells you to get out.

But more importantly you have to make the trades that the your system tells you to make. This is a numbers game and you have to make sure that the probabilities stay in your court. You can't let you last trade effect your decision making in your next trade. Every trade is a new start. It is alwasy ONE GOOD TRADE at a time, and then ONE GOOD TRADE, etc.


So I will be working on visualization exercises to train myself to just pull the trigger. SMB is big on teaching visualization as a skill to improve your trading since there is so much phychology involved in this proffession.