Posted On September 15, 2020
A new trader has their focus WRONG. Yes, we all want profits in our trading as well as our business no one wants losses. But if you focus too much in that it will result in fear.
You may be afraid when the market goes against you, and you may end up shifting your stops, exit early or you are too scared to hold your trade that you have insomnia.
When the market moves towards your target profit and stall for a while, you fear of it not hitting your profit to create the win, and you chose to exit early and miss out the actual move, then you beat yourself up for doing that and will cause you to spiral down.
All you need is to do two simple things, backtest per strategy per timeframe for 100times to understand how the market reacts to your trading strategy and journal your trade, and you can see for yourself how the trade goes. By doing this, it will help to build confidence and enforce discipline.