TRADING PSYCHOLOGY - A PROFESSIONAL TRADER HAS NEUTRAL REACTION ON WHATEVER OUTCOME OF THE TRADE

Good morning everyone!

It's a lovely weekend here in the Philippines, summer is over and there are some rain in the afternoon that makes the temperature cooler now compared with April and May season.

Ok on our lesson for today on psychological side.

As a trader we must change the way we react on the market. I know deep inside we feel some excitement or sadness depending on the result of our trade. But as a professional trader we must overcome this. I manage to control emotions and reactions like this and it improves a lot my trading performance.

So how do we overcome this? One is by minimizing our time looking at our chart and open position. Why? Because we tend to think too much when we do this. Try to snob the charts and trade result.

LEARN TO MOVE ON EACH TRADE AND SAY TO YOURSELF THAT THE NEXT TRADE IS A DIFFERENT TRADE.

Remember what we always said that each trade is totally different from one and another. Whatever system you use, it's just like a toss of coin "head or tail", buy or sell, long or short. There's only two way to make money in this business, no more.

Remember after winning that a draw-down will come, we don't know when but for sure it will come especially with parabolic system we experience draw-down after a big home run hit of 100 or 200 points.

When we loss we know that there is always trade to come as long as our capital is intact and we trade disciplined via our money management to protect or capital.