Trading University, Chicago Blog

You will find that the same qualities and attributes which serve us in life, also serve us in trading. 

1) Always be truthful. In reviewing why you missed a trade, or why you took a trade that didn’t fit the criteria spelled out in your trading plan, you need to identify what emotions motivated your actions or non-actions. You have to be truthful to yourself in identifying mistakes and in correcting them. Admitting mistakes is the first step to correcting them, and this process starts with the truth. Admit that you are human and that your will make mistakes and those mistakes are your responsibility.

2) Never take anything personally. Trading is a business. And markets know no emotions. You need to practice detachment from your own emotions, thoughts, and opinions, and you need to always take responsibility for your actions. Know that brokers and vendors are not buddying up to you because they appreciate your qualities and enjoy your company. They want your business.  Judge products and services in the trading industry based on how straightforward the seller is, track-record, and how transparent and accessible the ownership is.  Trading is your business and you need to keep it that way.

3) Never assume.  No matter how confident you are of a price move, never think you can skip steps, or not check price for indecision or momentum on the approach to influential support or resistance. And always define and collate a market’s direction on the appropriate time frames before committing to a trade. 

4) Always give your best effort.  Get to your desk early so you have extra time to prepare. Do not skip steps in your trading preparation process. Work on staying focused yet still physically relaxed. If you decide to incorporate new wrinkles and additions to your method, back-test them extensively before trading them live. Be mindful of eating right and staying healthy so that when market moves start accelerating you can stay on top of them by making adjustments to your sleep schedule when necessary. Trading is work, not a hobby. You need to give it the same serious consideration as anything else where the goal is to make money.  

If you recognize these four attributes it may because they are from of Don Ruiz’  book “The Four Agreements”,  which serve us well as a frame-work to model more than just our trading behavior on.

I’m looking forward to an even more fulfilling New Year where we continue to demonstrate to you the step by step process of trading achievement.

Jay
Jnorris@brewerinvestmentgroup.com
800-971-2154

Jay Norris is the author of  Mastering the Currency Market, McGraw-Hill, 2009 and a Trading Instructor at Trading-U.com and a Senior Market Strategist with BrewerFX in Chicago. To see details of Trading-U’s available course work go to Trading Course  To schedule a complimentary, interactive tutorial with Jay on determining market direction and hear more about “Live Market Exercise” go to One on One Tutorial

DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. Risks include the potential that changing political/economic conditions may substantially affect the price/liquidity of a currency. Investors may lose all or more than their original investments. Any charts shown here represent market conditions at a particular point in time. Such conditions may not be replicated in the future. Past performance is not indicative of future results.

admin "Forex Trading" "Forex Education" "Trading Education", Add new tag, Succesful Trading Principles, Trader Mind Set