To Be In Control Of Your Trading, Stop Trying To Control The Market
Find your place in the market
The trading market is home to countless variables – all influencing the market in various ways. Different traders have varying opinions, expectations, and feelings about the market, while experts make decisions based on regular economic news releases and predictions. With this amount of data flooding the marketplace, it is almost impossible for any trader to control or fully understand the true extent of info available enough to control the market.
The most important thing is to realise and appreciate your small place in the big picture, surrounded by other competitors also trying to get their share of the ultimate prize. The number of competitors and the endless data available is impossible to control, much less by a single trader. Your focus should be to find your place in the market, execute your trading plan, protect your investment through risk management, and generally focus only on the small variables within your control. You should be able to learn these in your forex trading course.
Your innate need to control might just work against you
Many traders usually try to control everything in the market while forgetting to control the most important thing that falls within their control, which is themselves. The reason is that most people naturally lack self-control and discipline and try to compensate for this lack by trying to control others or their surroundings to make them feel better about themselves. The same usually happens in trading.
One of the reasons many people want to have control is the fear of not being in control. The fear of losing their investment, for example, forces them to want to attempt to control the trading market by moving their stops and targets around, over-trading or generally risking too much. The truth is, while such moves might give a trader a temporary sense of control, feelings of panic, frustration, and anger quickly set in when even the smallest market variable begins to act in ways they did not expect. Traders must learn to trade and accept what they cannot control and suppress that innate need to always want full control.
Failing to plan means planning to fail
Having a trading plan is one of the most effective ways of killing the desire to be in control. Having a trader plan means knowing exactly what you’re doing in the market despite all the forces you cannot control. You’ll find that in most cases, traders who learn to trade and are profitable are the ones who are always in control of themselves, while the traders who usually end up with losses are likely the ones always trying to control the market.
A trading plan also gives you a clear sense of direction in the trading market. It is important to have a plan when you’re not in a live trade or looking at charts, as that’ll help you make a more objective trading plan with a clearer head. Your plan should also help you remain disciplined regardless of the market behaviour while giving you better self-control. This is particularly important during the beginning stages of your trading journey or when you start to learn forex trading. Entering this market unprepared with a plan is almost like choosing to fail.
Four main things that you can control in a trading market
When it comes to analysing the market and executing trades, here are four things you can control.
- Risk management: You can use various strategies to contain or control your risk in every trade, like properly placing stop losses and adjusting your position size when you learn to trade.
- Entry and exit: You can choose when to join the market after your forex trading course and when and where to exit.
- Trading plan: You also have full control of your trading plan, with the freedom to add to it. It is important to ensure that your plan enables you to practise self-control and discipline in the trading market.
- Your state of mind: A trading plan makes it easy to control your state of mind, know how the market works, and develop a trading strategy.
The easiest way to exercise self-control in the trading market
Many traders will find self-control easier said than done, especially when they don’t feel too confident about the outcomes of the moves they make. However, one of the easiest and most effective ways to exercise self-control in the trading market is to set and forget your trades. While this may sound pretty simple in theory, it can be difficult to practice. The principle, in effect, suggests that after setting a trade, do your best to forget about it. In other words, if you can set a trade, turn off your computer, and walk away from it for a week, then you’re likely going to succeed in trading long-term. You might want to start practising that as soon as possible.
Learn to Trade with Guerrilla Trading
To sum it all up, the issue of controlling yourself versus the trading market is the core of why many traders fail to earn money at trading. With many people speculating what the financial market will look like and everyone pretty much being in charge of their trades, a person’s ability to ignore temptation and follow a trading plan becomes the ultimate test. Self-control may not be the easiest thing to master in trading. But once you get the hang of it when you learn forex trading, you’ll set yourself up to start earning money at trading. At Guerrilla Trading, we will teach to the fine art of trading and put the control in your hands!
