Trading Psychology: You need to master this two.

Over and over again, I made several time this mistake. Being a professional trader I worked lot to put this two weak point of mine into the right direction. I tried and failed. Frustrated for the long time.

One is booking the profit too early and second is not cutting the losses.

Being novice, I wiped out my account many time. This thing has hurt my trading career for long. I frustrated and decided not to do trading. But this is what I find fascinating. So, I started finding the right solution.

I worked upon the psychology and read few books and talked to fellow trader. Most of them accepted they too had faced the similar challenges. But they mastered this.

Today I made some similar mistake and thought to share this.

1. Not cutting the losses and at the end it pile up to give you bigger losses.

This is what happened. I took a trade. It seemed all good for sometime. Then it start going against me. I was knowing that if this break this level. It will move further against me. I just then put my expectation in between and it broke the level. I haven’t exited and it gone and gone further. Lasted as big loss.

And one thing is important. If you just became against the trend it will ruin your career. As trend last longer than we think. If it is strong trend for the day then forget to recover the losses.

So, its better to book the looses. Also, it depends on whether it is strong or weak trend.

Don’t average if its a strong trend. And not making any support/resistance.

2. Booking profit early.

Its human by nature.If something is going good. We want to just pluck the fruit. We don’t see the bigger outcome.

Most of the time we don’t show patience to let the profit grow. Some will argue. It changes its direction very fast. It may be ok for the first 30–40 minutes in the morning or in the volatile market. But In the day time. When you identify your trend and going well in your direction. I can bet that trend will last longer than you think. We can book the profit at our target or at reasonable profit that you think.

So, see fibonacci level, pivot point or support/resistance. This is where you can make the decision. Also, the day chart or 15 mins chart at least. 80% of the time you can correct yourself. And let the profit to take care of you to the next level of consistent trader.

Just remember this fact in your head. These psychology with consistent practice can be achieved. To become the wolf you need to keep these things.

Hope you will work hard if you are facing this type of challenges. One thing is common intraday trading is too risky and riskier things take more time and dedication to master them.

Hence, Show patience and master the skill.

Happy trading.