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Whether you have been trading for years, manage millions or are just starting, we all have something in common.
We all make trading mistakes.
Finding trading success is never a direct route and there are many pitfalls a trader can fall into.
There are those mistakes that are easy to fix without much effort but there are others that will be a challenge.
Trading Mistakes From The Inside
Looking at the psychological factors that can inhibit our success, there is not a fast way to deal with them except diligence and time.
Money makes people emotional and perhaps that is one of the reasons that it is often cited as a major influence on the health of a personal relationship.
If people can’t quickly change their thoughts about money to save a relationship, what chance would they have when it comes to trading?
When a trade goes against a trader, there can be a wide range of reactions from simply acceptance of the random distribution of wins and losses all the way to anger.
The anger will cause a trader to do things they know they shouldn’t do such as move their protective stop away from current price which will destroy their risk profile that was originally planned out.
This same anger will have this same trader attempt to get back at the market by knee-jerking into a trade that falls outside their trading plan. These types of reactions rarely turn out well and will simply erode not only the confidence of the trader but also erode their account balance.
The fact is that this type of reaction is hard to change.
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