With the right plan and the right approach in place, any new trader can start trading their way to financial freedom. It won't be easy. It will take a lot of work, a number of setbacks and a great deal of determination, but many have found that trading is one of the best ways to reach the level of financial freedom they have always wanted. One of the keys to finding success in today's difficult market is to completely remove emotion from the equation. It may sound easy, but this can actually be more difficult than it seems.
Emotions can cloud your mind and have you making rash decisions that can negatively impact your trades and your ability to earn the type of money you have always dreamed of. Here are some easy tips to remember when trading that can help you remove emotion from the equation and make the smart decisions you need to earn the type of money you have always wanted.
1. Make a System and Stick With It (Staying Calm)
Before you start trading you need a plan. You need to have a system and be willing to commit to that system. This doesn't mean that you can never switch the plan for a new system, but you need to be ready and willing to give your system plenty of time to work. Remove frustration from the equation. If your system doesn't work right away. Give it time. Stick with your system and give it the chance to work.
2. Know When to Trade (Exercise Control)
There are times to trade and there are times not to trade. You need to be able to exercise self control in order to make smart traders. There are times when you should trade and there are certain circumstances when you don't need to trade. You need to be able to exercise control, particularly when you are experiencing losses. You also need to be able to exercise control when you are doing well. Many people get a rush of excitement when they are up and want to keep trading and keep doing more, but you need to stay in control, before you make a mistake.
3. Know When to Walk Away (Removing Attachments)
If you have put hours and hours into a trade or a certain stock, done all of the research and put in all of the effort needed to make the right choices, it is easy to feel really attached to and invested in that trade. You need to know when to remove your attachment to something and when you should walk away. This can be hard. You may not think you are emotionally invested in something like a stock, but many people get caught up in their emotions and do not want to walk away from something they feel so invested in, even if it is just a stock.
Trading without emotion is difficult. It takes practice and it takes being self-aware and exercising control, even when it is hard. However, if you can do this, then you will be on your way to finding the financial success you have always wanted and the financial freedom that you deserve.