It is very alluring to try and change your trading system once in a while. It eventually becomes stale and boring, in worst cases, you experience a string of losses. It is tempting to switch to a new system every time that happens. Today, you’ll learn how to be confident with your own trading system all the time. You’ll also learn a bitter truth, nothing or no one can guarantee a 100% win rate.
Here are some step you’ll have to do in order to build up your confidence on your own system!
You Win Some, You Lose Some
First and foremost, there is no perfect system that exists. To be honest, no one is smarter than the market. You have to accept the fact that trading has its ups and downs just like any other businesses.
You can’t avoid those circumstances. Be wise and move one. Learn from that experience and be better. Pick up yourself and live to trade another day.
Losing is inevitable! You have to accept that fact. Once you understand that you won’t win every trade, then you are right on track for the next step.
The second step is to balance out everything in your life. A healthy mind needs a healthy body. Make sure you take care of your health and mental well being.
Trading is physically and mentally draining. Make sure that you are always on your best shape and performance every time. Exercise, eat healthy, and get a good night sleep. Make sure that you are at your best shape so you can perform and trade at your peak state.
Remember, taking a trade lightly means disrespecting yourself and your trading system. It will slowly grow on you and you will lose your confidence in your own ability and in your own system.
Life is full of surprises and the only thing that is constant is change. The same goes for trading and with your system. You’ll experience great turbulence every once in a while, but don’t be disheartened! You’ll have to adapt and overcome the situation.
On the other hand, changes need not to be hasty nor drastic! But rather methodological. Create a trading journal so you can track your trades and log your results. Identify your strengths and weaknesses and work around them. Changing your system regularly, or every time it hits draw downs will do more harm than good.
Always remember that a trading system is intricate and delicate. Big and even small changes will impact the reward-risk ratio greatly.
Device a plan and always act with data on your side. Adjusting your trading system is the best way to handle these kinds of situations. The market is constantly changing and evolving. Be open to changes, familiarize yourself your numbers (hit ratio, edge ratio..), and start trusting your trading system.
The secret to a great trading system is the confidence behind it. Remember that you won’t win every battle and that’s perfectly fine. Trust in your system and in your judgment, once you respect yourself and your system it will become easier. Make every trade count. There is no perfect trade, accept that you can lose the moment you hit that buy button.
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