When you start asking yourself questions about how you can improve your trading, most traders will start to look for answers outside of themselves. For example looking for the next best trading system, magical indicator or a trading guru that make all the calls so that they don’t have to learn more about the markets themselves.
However, there should be one major objective for you if you are looking to improve your performance. You need reach a level of self awareness, where you may notice your automatic thoughts, behaviors and self-doubts. That is the exact point where you may get past them. You begin to notice when you are feeling in a certain way that engages you with negative trading habits, and at that point your are able to shift to more disciplined thoughts that lead to being performance focused rather that thinking about winning or losing.
You cannot control the market, but you can control yourself, by learning how your unconscious thoughts influence your behaviors. Trading is like slipping on a ski slope, where you must learn to control your slipping rather than avoid slipping. So to master the game you must control your mistakes rather than eliminate them totally. Trading is about embracing your imperfections and not being perfect.
Humility is a required attribute for a master trader, and learning how to deal with markets that a constantly changing. you have to be prepared to accept that what may have worked before may not work tomorrow, and then adapt accordingly.
It’s not a simple process. As traders we must face our demons – impatience, fear, anxiety, greed and negative self sabotaging thoughts. How well you have mastered accepting and controlling these internal responses will define how good you are as a trader.
To learn more from Kam, be sure to check out his blog.