Trader Mindset

This page is brought to you in association with Ava Trade auto trading  Introducing Ava Trade – the future of financial trading.  Ava Trade is the new name for Ava Fx. The same team, better products and a full brand refresh. Ava Trade mean business and this latest investment in product and brand mean that they are here for the long term. Trade via Ava anywhere on the move or at home, they just keep getting better and better……

Key Trader Rules

1. Discipline – if you wish to trade then take it seriously

You can lose alot of money trading if you don’t take it seriously. If you decide to trade then you should be serious about it and manage your risk. Chose the right type of account that suits your trading objectives and stick to your plan.

2. Lose the dream or notion of fast money or getting rich overnight

Trading will not change your life overnight. There is no get rich quick scheme that you have just discovered where the rest of the world plods to work everyday but you have found the fountain of wealth on your pc…. Forget the hype and lots of trivia on the web where people made millions sleeping. Its none sense. There is only 1 way to build a castle, and that is 1 brick at a time.

3. Love your losses

Losses are part of trading reality, there are 2 ways you can treat them:

a. Hate them, get bitter, let them cloud your judgement and try to revenge/recover them and trade recklessly only to lose more or

b. Learn from them, what learning can you take away from it, philosophise about it and get wiser. Losses will always occur in trading its how you deal with them which which is important. Treat losses like real time investment advice…

4. If you trade a strategy – then stick to it

If you trade a strategy then do not be distracted from it because the market is not moving your way…. Hold your nerve and your positions until the market or position recovers – they nearly always do as long as you are patient.

5. Be patient

Well if your not patient then your in for a shock. There is a common them here and the underlying messages are discipline and patience. If you are not patient and are looking for quick wins then go to the casino, trading is not for you. Learn to understand how markets work, how they are influenced by sentiment and appreciate that you can’t get it right 100% of the time, if you trade the wrong way you either close your position in loss or waut for it to recover. Waiting requires patience and faith in your own trading. Learn Both.

6. Don’t keep looking at your trading account 24/7

If you allow your account to take over your life then game over. You a human, you brain needs rest and relaxation. While you have positions open treat them as money at work (just like when you buy a stock or share, the sahre price may move down and you wait for it to come back into profit), programme your trade accordingly and the systems will take take of your limits orders even if you are away from your desk, app or ares  simply asleep.

7. Trading is not a casino activity

Boom boom bust….

8. Think long term

Slowly bag your profits and one fine day withdraw your cash and enjoy.  Short term trading is not only risky but can damage your finances beyond your initial deposit if you are trading on margin. Take your time – there is always tomorrow.

9. Deposit enough to cover adverse market movements

Markets move sometimes very perversely. And running losses can mount very quickly. Relax, the market will come back to fundamentals eventually.  Make sure you have enough cash to cover any margin calls on your account and monitor your account (not 24/7)  but make sure your calls are covered.

10. Look for a broker that doesn’t have fancy gimmicks but tight spreads – its all about the money

We see so much bling and noise in the markets now days. Frankly, bullshit baffles brains. Don;t be baffled ok? Its all about trading profitably. Forget teh gimmicks, what good is the gimmick if the spread is twice as wide and it takes forever for a position to get into profit? That’s why we trade with Ava Trade – we have found a broker (at last) with tight spreads and doesn’t mock the trader with fancy social feeds and trading gimmicks. Professional, profits focussed trading that is what it is about.

11. Read, learn, absorb and learn

Without education and knowledge there is nothing. Learn, learn and then learn some more. There are so many materials out there (see our Trading Academy where we filter all the none sense away fro you so that you get the real deal in one website)

12. Prioritise your life

If trading is your life then something is wrong. Trading should be part of your life. Prioritise your goals and trading should compliment your other priorities. Trading can easily take over your life, learn to step back, enjoy your life and then come back to your broker accoutn and trade – Keep things in perspective.

13. Lose the emotions

With emotion you will not make logical decisions and will no doubt lose money. Leave emotion at the door when you trade. There is no place for it here.

14. Enjoy your trading

You have to enjoy it or there is no point.  For me its my friend. I spend time programming then I let the programmes run. People often focus on trading as the saviour, this is wrong. Trading is a tool. Use it wisely.

 

We are in the process of adding content to this page but wanted to get something out there for our man Sean Sergeant – yeah he knows who is he (aka Nicv) – please check back shortly…..