Live Trader Coaching Video!
“Never use a random technical tool or indicator to justify a wrongly reactive emotional reason to get in or out of a trade”
In this short video we run through a live scenario where one of our new students Alina places a great first trade on the FTSE, yet then is emotionally influenced by the first trades winning result and then jumps into another one very quickly. She then tries to justify this decision by using a random technical analysis tool that is very importantly not related to her specific trading strategy or plan. This is where mine and the TSC team’s trader coaching comes in as I help coach her through some of the things she needs to think about.
Alina is doing brilliantly! She is hungry, focused, very switched on and is picking things up extremely well and it’s still very early days for her! She is very wisely using her time in the our Live Online Trading Room to share the trades she is placing whilst taking on board the feedback and make the most of the live trader coaching opportunities. It’s natural and normal in the early days to make mistakes and be influenced emotionally by your trade results whether they win or lose. In most cases the new trader makes the mistake of being emotionally driven by the result of each trade they have, rather like a gambler in a Casino who is on either on a winning or losing streak. Do you ever see the Casino getting emotional involved?
I often get asked what things can you do to help not get so emotionally involved in your trades, so here are some things that have helped myself and the Traders Support Club students.
Get a Good Trading Coach – Very often, as in Alina’s case, you don’t even know you have been reacting emotionally or breaking your strategy rules until during the process of trader coaching the right questions are asked and in a live environment.
Really believe that trader coaching will help – Sounds strange but you have to want, believe and value what your coach is telling you even if it initially feels counter intuitive or that they are unfairly pissing on your recent winning trades parade!
Be strong enough to take the feedback, questioning and criticism. This will help thicken your skin which is a much needed attribute in trading.
Focus On Being Process Driven – The result of each individual trade actually is not important, it’s the result of the 50 and 100 trades you place and making sure you stick to your process for each of those. Ask yourself “Have I stuck to my rules on this trade?” and initially mark your success by this!
Don’t set yourself strict weekly or monthly points or % ROI targets – This is a form of being too results driven. It’s much better to work to benchmarks and loose targets because very simply you could have done everything right but the markets and your strategy are not delivering on that day, week or month. Also if you set yourself a target of 10% that month you can easily end up taking a poor trade set up, when you are at 9.2% ROI with one day of the month left to go, because your simply being to results focused. The trade wins and you wrongly think you did the right thing and go off and celebrate under a false pretense about how your month has finished off! Or the trade loses you are now at 8.2% ROI for the month and you now feel you are running out of time and either wrongly start hunting down more poor trades or going into the end of the month feeling regretful about being greedy.
Make sure you have a big enough emotional reason “Why” you are trading – This needs to be bigger and more important than simply winning or losing on that individual trade.
Have Your Trading Strategy & Trade Execution Process written down – This is vital int he early days until your strategy and process become habitual and even better have a trading coach check through it. Make it easy to follow and as visual as possible. Scroll the charts back and practice this on previous trades so your tune your mind in on what to focus on.
Get live and Trade Live – As you will only really know how you react once you are in that position, just as Alina did.
Alina’s is doing all of the above and more and is why she is progressing so well and this was her response to the live trader coaching session…..
“Thank you Ali Crooks! On that day after talking with you everything become so clear. I was literally lying myself that there is a consolidation or that the market might go down. You can never predict the market and once again it has been proven to me.
Thank you again for the AHA moment!”
Trade safe and take the time to step back from the result, focus on your process and execute your trades well.