- Listed: September 23, 2017 4:55 pm
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Self-control and adaptation in trading
Novice traders who come to Alexander Gerchik’s seminars are asked to show them the correct entry point, to teach them to put their stops, and to foresee where the tool will go. Many people think that this will be enough for profitable trading on the stock exchange. This is a fundamental mistake, a wrong approach.
The most difficult
Perhaps, at first, the technical and analytical skills will be enough for a good trade. However, long-term success rests mainly on the psychological stability of the trader. Ask any trader with a regular trading experience of 3 years. Those who were even once beaten by the Market will say: “Psychology? Well, this is the hardest part. But without it – no way. “
In trading, there are many problems that directly affect your inner well-being:
- Earn little – you are unhappy;
- Earn a lot – you will try to earn more, and the Market will beat you;
- Grow very slowly – again unhappy;
- You grow very fast – excitement starts;
- Too short trades – are impatient;
- Slyshko long transactions – stay in the hope of breaking the jackpot;
- The mismatch of the expected risks with the real progress of the tool is irritating and causes internal anxiety;
You can add to this list yourself.
No, except for jokes, write on a piece of paper that bothers you. This is one of the most powerful tools for dealing with psychological problems. Formulating his dissatisfaction, writing out in detail (in the old manner, a pen on a sheet) the causes and consequences of his “glitches”, a person thereby begins to see what he did not notice behind him. And this is the first step to self-control.
Adaptation to the Market
Alexander Gerchik believes that the most difficult thing that can happen to a trader is an adaptation to the Market.
Market – the structure is flexible and unpredictable. However you successfully trade, in the end, the Market will change, so that any model, any pattern, will break. From how you survive the destruction of your “stop” trading model depends on your further progress in trading. If you do not change faster than the market changes, then you will be disappointed.
Each and a half or two years you will have to re-adapt the strategy to the changes in the Market. Most likely, that period of time, until you change your strategy – will be without profit. Hence another useful tip – once your strategy stops working – immediately reduce the volume.
Panacea – no
There are no universal recipes for solving psychological problems in trading . Everyone should deduce the recipe. For 20 years of trading on the stock exchange Alexander Gerchik has learned to cope with his “dark side” with the help of some tricks:
– Excessive aggression to be treated by sports. Moderate physical activity calms the mind and nerves.
– Disorder with losing trades is treated by statistics. It is impossible to always win the market, and understanding this, based on real data, allows the trader to see an objective picture. There is no continuous profit, nor is there a continuous loss.
– If you are reckless and stay in the transaction – you need to use robots that will force you out of the deal.
We hope that these tips will help you survive difficult situations. The main thing, remember that each person is a unique set of properties and qualities. Universal tablets do not exist.But if, without ceasing, pick up the keys to yourself – sooner or later you will find.
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