“Quite some period…I been sittin it out…didn’t take no chances…was a prisoner of doubt.” – Straight On (Heart)
In a previous post, I covered some of the steps necessary to recover from deep trading wounds and what it involves to start moving past the pain and toward progress again.
Taking a large hit in your trading sidelines you, either literally or (a whole lot worse) mentally. I understand from experience! Even though there are occasions to have a break to avoid doing additional damage, at some true point, you still have to get back on the horse and overcome those doubts.
But how can you start doing that?
Whenever your confidence and account took a sizeable reduction, there’s a huge amount of doubt to see through, therefore let’s look at 5 ways to do that.
1.) Take it down a notch. And you know precisely what I mean. When you’re starting out or starting over, you have to start small. Small plenty of that it’s all about the process and not the result. By doing this, you’re establishing the tone for growth again, you’re respecting the marketplace, and each trade assumes minimal significance while you’re getting back to the right habits.
2.) Get particular. By narrowing your concentrate compared to that which you ought to be doing, by default you can remove much of the fear you could be facing, in addition to a lot of the difficulty which includes a fly-by-the-seat-of-your-pants design of trading. Without a game plan, you’re taking part in the guessing game. Understand which conditions you’re facing, and proceed with the strategy best-suited for those conditions.
3.) Set realistic objectives. As much as you might like to, don’t expect to make it back right away. Big expectations may be what got you in trouble to begin with, so curb your enthusiasm a bit and aim to just get the bat on the ball first. The idea is to start a foundation which can support bigger and better results, but at the moment it’s first things 1st, so look to begin small.
4.) Preserve risk in check. As noted in the real point above, you can’t go swinging for the fences simply. To avoid that, possess arisk per trade amount that’s appropriate for the fresh start you’re making. And be careful with how many positions you’ll carry at once, at least until you’re back in the flow.
5.) Hit singles. Early on, the aim is to get on foundation and set up a rhythm of achievement that can be constructed on. By selecting high-probability setups with described risk, you’ll boost your odds of engaging in that rhythm and begin marking some outcomes in the black – precisely what you will need the most.
** What are various other methods for getting beyond dread and doubts on the path to a trading recovery? What has worked for you recently or in the past?