Observe your own behaviour.

It is critical for improving your trading,to observe what you are doing as if you were your own teacher. I always try to think of myself as two different people during market hours: one person,that is trying to make money all the time,having emotions,impulses,joy,anger and so on. The other one is there,to control that person and to prevent that person from blowing up his account.

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This has helped me a great deal,because it automatically leads you to reduce your impulsiveness and to be more rational in your thought process. Of course not everyone will do it this way,some people may be so disciplined,that they don’t need those tricks to help themselves,but for me it has worked. As soon as i feel very anxious after taking a trade,most of the time i immediately know that i should not have taken that trade. The anxiety comes from knowing,that my risk is too high or that the odds are not really in my favour. When i enter a trade where my risk is not to high and the odds are in my favour, i am absolutely calm,even if i am stopped out. I then can accept the fact,that being wrong is a part of trading.

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About Schwarzdaytrades

I am a full time day trader. I like to share my opinion about stocks and the psychology of trading.
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