The Insight Trader Reveals Effective Ways To Deal With Losses
At some point in the insight trader`s career, he will be faced
with a string of losses that will bring his confidence to an
all-time low. Every active trader hits this point at least once,
and some will visit it several times. This active trader will
reveal to you ways to successfully deal with this problem.
First, every active trader needs to take a break from trading. A
one-week break will allow the insight trader to relax and
regroup. It is impossible to trade effectively when the insight
trader is under extreme stress. When the insight trader has
decompressed and returned to a more positive frame of mind, the
insight trader will be able to reaffirm goals and think clearly,
when the time comes back to go back to the trading room.
The insight trader should pay careful attention to his mindset.
If the insight trader does not have a positive approach to
trading, the best tools and strategies can be at his disposal,
but trading will not give the results he wants. There are
varieties of meditations and visualization techniques that can
help the insight trader achieve a positive mental outlook. Learn
about them, and use the ones that work the best. Once the
insight trader can effectively see him, as an up-and-coming
successful trader that will meet and exceed all goals, the
insight trader is more than half way there. Remember, the
insight trader`s mind is the greatest asset he posses.
Next, the insight trader should consider his trading experience
- up to now. It makes sense to take stock of trading, and ask
this important question:
The most important question is: 'Have I been following my
Often failure in the market is caused by not following a plan.
See when the insight trader departs from his plan, consider what
is needed to be done and do not make the same mistake twice.
This kind of analysis will give the insight trader valuable
insight into trading, and help attain much greater success in
With consideration of the trading past in hand, make whatever
adjustments needed to the trading plan. The insight trader`s
trading plan should define his approach to trading, and should
give him a course of action for any circumstance that might
arise. Without a comprehensive trading plan, it is very
difficult to be a successful active trader.
Last, when the insight trader begins trading again, follow the
plan flawlessly and acknowledge the fact that this is hard to
do. But, commit to doing this step and be disciplined. Either
undisciplined behaviour will be punished by the market, by
direct losses or by the loss of profits, the insight trader
could have made. However, the market can confuse this issue with
random reinforcement. Random reinforcement is the market`s
tendency to reward bad behaviour from time to time. This is one
reason why it takes so long for active traders to understand the
market. However, even with random reinforcement, it makes no
sense to have a system if the insight trader is not going to
Given that a trading plan is so hard to follow, the insight
trader should take some time to reward himself for doing this
difficult task. Celebrate even if more losses than winning
trades are made. Remember, losses are just as important as
winning trades; they are a part of any system, and a sign that
the insight trader is following the market wisdom of cutting
When active traders are up and trading again, they should
consider finding a coach. Even this active trader has a coach.
In fact, this active trader has several coaches in all areas of
life. This active trader learned the importance of mentors from
Tiger Woods. Even he has a coach. Now why does the best golfer
in the world have a coach? It certainly isn`t because his coach
plays a better round of golf than him. No, it`s because a coach
can see things from a different view point. A good coach can be
vital in helping the insight trader along his trading journey.
It isn`t easy to pick up and start trading again after a long
series of losses. But, with these techniques, the insight trader
should find himself trading again, and making money. With the
right approach and a well-designed trading system, it`s only a
matter of time before the insight trader becomes a successful
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