Following are some psychological tools for trading that I have gained from my own personal experiences:
- After virtually trading for almost a year after losing money I decided to begin trading with the smallest amount. It accomplished two things: eliminated any emotions I had in trading and it allowed me to trade my plan.
- Keep good records – I learned a lot from losses!
- Entering a trade was usually not an issue – it was exiting the trade so I created this psychological belief that it became inconceivable for me to stay in a trade when I should have exited.
- I don’t set aside time for reading market commentaries or opinions. I would prefer to a lot a bit of time over the weekend. The rest of my reading time is devoted to learning Universal Laws!