Monday, September 7

How to win Mental Game of Trading

As per my experience in trading for 10+ years , the biggest obstacles for trader long term survival is
  • Managing risk in trading
  • Trading on your trusted and winning trading strategy
Even if you control your risk on every trade and have a trading strategy that is a winner in the long term you can still be tripped up by your own mind. Even while managing risk you will probably lose 10% t0 20% of your capital or even more in a draw down with a more aggressive system . This is just the reality of trading.
Even with a robust trading system or methodology that wins in the long term you have to sit through losing streaks of 10-20 trades at some point in your trading career.
What does it take to come back after you lose? Especially after you lose big, or after you lose over and over. Even under performing for a month or quarter can put pressure on a trader.

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