Is Your Option Trading System & Your Trading Psychology In Sync?

When you have an option trading system that you are truly comfortable with i.e. you have backtested it extensively and paper traded it on live market prices, you have built a solid foundation for your long-term success. This is due to the psychological advantage of 'objectivity'. When we follow a precise set of trading rules that we have confidence in: - We feel no pressure pushing us to trade. - We trade without fear or the need to be right. - We trade what we see, not what we think. - We know in advance 'exactly' what we will do in 'any' market scenario and we have already 'committed' to doing it. - We are not focused on how much 'money' we may or may not make, but rather on 'trading well'. If the above points describe you and your trading equity is growing consistently, then congratulations, you have found a good option trading system that fits your psychology and risk profile. Your option trading system and your psychology are 'in sync'. This is fundamental to your long-term success as an option trader. If however, you feel that you fall short of the above criteria, then I would suggest that you stop live trading immediately (if you are) and go back and continue backtesting/paper trading your option trading system. You may need to adjust your trading rules as you test but when you finally have a trading system that performs consistently well over time (that you have traded up, down and sideways), you will have the 'confidence' to put your money into the market with a 'winning' trading psychology. This is absolutely critical because as the old Wall Street adage goes, "Scared money never wins!" If you are new to option trading and need a proven, simple and effective option trading system click here. Happy Option Trading!