It is very common for many people to stray from their plan and strategy when it comes to trading. Many times the reasons for doing so are quite obvious to others but to the individual it seems much more risky and uncertain. The uncertainty that is inherent in the markets is what allow for significant profits to be made. Uncertainty causes many people to lose sight of what they are really trying to accomplish and how they are going to accomplish it. Uncertainty also influences many negative emotions for individuals who have money at risk in the markets or any particular stock. The difference between those who have success in the markets and those who do not is that the successful ones maintain their composure during times of uncertainty and losses. The best traders understand that they will have losing periods and that they will not be able to make profits everyday or every year! These traders have an advantage because they continue to do what works for them even when the time eventually comes when they will lose money from their strategy. Successful traders do not concern themselves with the day to day gains and losses. They are concerned with the long term profitability and longevity of their trading strategy. They maintain their composure and objectivity toward the markets, they do not worry about the losses and do not act based on fear. Unsuccessful traders act in the complete opposite way. These traders allow their emotions to consume them and allow uncertainty to scare them into acting in a way that is not in accordance with their strategy and objectives. Unsuccessful traders allow external information dictate how they will trade rather than following a strict set of rules in an unbiased and objective way. Unsuccessful traders will ditch their strategy completely after just a small string of losing trades and decide that the strategy is faulty. They jump from strategy to strategy losing money each time. If you want to become a successful trader you must decide to stick to a particular strategy during the good and bad times. You must have confidence in your system and have the patience and courage to be consistent with your strategy and trade it even when you are losing money. This is much easier said than done but by making a firm commitment to follow your strategy and to not be swayed by emotion or external factors is the key to becoming a highly profitable trader! Maintain your composure and trade well!
-James
-James