The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition. These traders instinctively know their position sizes are far too big. This destructive behavior quickly becomes a VERY serious lifestyle problem that will ultimately lead to a forex trading hours over christmas’s financial and mental demise.
Why do traders fall into this destructive mental loop? So, why do so many traders seem to fall into this destructive mental loop of worrying too much about their trades? As any regular reader of my posts will know, I often say that the goal of a trader should be to place a trade and not think about it obsessively. You are in the market to take advantage of price movement, so stop interfering with the movement.
6 months or a year, you don’t know it all yet and you should only be risking tiny amounts relative to your overall risk capital pool and net worth. What is your overall net worth? Do the math and come up with a figure you know you can risk comfortably on one trade and live with if you lose. Remember, you need to start somewhere and if you can’t make money on a smaller position size, how will you ever make money on a larger position size?
The most important thing is to work on rebuilding your self-confidence in your trading. You need to eliminate doubt and fear from the equation, which can be a hard thing to do if you’ve gone off on an addiction-fueled trading excursion and lost a lot of money in the process. Remember this is an exercise to train your brain to place a trade, believe in the trade, walk away and let the market do its thing. The way you prevent this is by distractions. But, perhaps the best distraction will be an unquenchable thirst for knowledge and trading skill development. Ideally, you should combine all the above. Conclusion The point of today’s lesson is essentially that you need to change the way you think about trading.