Monday, 28 February 2011

Walking the Tightrope

So I've established that there is a fine line of confidence that has to be walked in order to be successful as a trader. You can slip off that tightrope if you get under or over-confident. For 2 weeks I've been under-confident. Following hypnotherapy and a few wins, I was nudged off the tightrope due to a brief moment of over-confidence. Today, I will get back on the line and try to adjust myself so that I can acheive the right balancing act.

I worked out that there is one technique that could manage to keep me on the straight and narrow - talking. I've mentioned in previous posts that talking aloud through each point and summing up what is happening and how it affects my strategy, keeps me more focused. It enables me to plan ahead of time the trades that I'm going to place. So instead of making snap decisions on the spur of the moment, I am ready a couple of points beforehand, so I know my get-in point will definitely be part of my strategy AND I will have time to think about my get-out point if it goes wrong.

I've noticed that most of my losses tend to come when I have not been talking to myself and so have not pre-planned a trade. I just suddenly think 'Ooh, this looks like a good entry time, quick, before it goes!' and without thinking, I've clicked on the ladder and the bet is on its way. Then when it goes wrong, I freeze-up in shock and don't react quickly enough because I don't have a pre-defined get-out point. Before hypnotherapy, I was doing this because I was scared of missing out on a win. Now, I have begun to do it because I'm so confident it will win, I'm not prepared for it to go wrong. Hopefully, talking and planning ahead will acheive a greater balance.

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