What's Your Level?
10/03/2014 6:00 am EST
Andrew Menaker, PhD of AndrewMenaker.com teaches the trader to not just promise to learn from mistakes but to develop resilience through adherence to a personal level of awareness.
Your level of awareness is a huge factor in how closely you'll follow your trading plan. Paying attention and being aware of your internal state will help you to control your actions.
After holding a loser too long, or losing money on an impulse trade, or missing another great entry, or exiting a winning trade too early, after the dust settles, and you look at your chart, ask yourself, why did I do that again?
It’s so easy to see your mistakes after they occur. And if you’re like most traders, you’ll promise yourself that you’ll do better next time.
How many promises have you made?
You need to do more than promise yourself that you’ll do better next time. You need a strategy. And If you’ve tried Neuro-Linguistic Programming (NLP), meditation, visualization, positive self-talk, and affirmations and are still making the same mistakes, chances are you need more than those strategies.
Trading requires that we tolerate a wide variety of discomforts, from losing to missing out. Developing resilience is the answer. One of the most effective ways to develop this resilience is by developing a deeper understanding of what makes you tick, what sets you off, etc. After you learn that, you’ll be in a better position to recognize and trust your intuition.
By Andrew Menaker, PhD, AndrewMenaker.com