During my evolution as a day trader, I went thru phases of learning and development. At some point I concluded that it was the trader and his psychology that will determine success in trading arena. I realized that once you tackle emotions and impulsive behavior, once you are able to consistently execute your trading plan, you can succeed as a trader. I dedicated a lot of my time reading trading psychology books, attending personal development programs like yoga, meditation and hypnosis etc. All these had a tremendous impact on the quality of my life, how I deal with stress and impulsive behavior. However, I was unable to flawlessly execute trades, I was hesitating to enter trades as per my plan.
Flawless Execution
Flawless execution refers to the ability to consistently execute trades as per the trading plan. The key to flawless execution are the following
- Trust your ability to execute on a plan. A lot of this is tied to the level of integrity you have as an individual. Do yo execute your tasks on time ? or Do you keep your word or show up for appointments on time etc.
- Confidence in your trading strategies. This comes from practice and experience. There is no substitute for screen time. Practice your strategies until it is second nature.
- Focus and preparation during trade execution. If you enter a trade without fully understanding the context, trader may not feel very confident about the trade once it is placed. Result, trader may move stops or close the trade in a hurry. It is very important for trader to stay focused and analyze the trade setup as it is being formed. Never rush into a trade without following the setup as it is developing, at least 10 to 15 minutes before the entry, depending on the timeframe you are trading. Avoid disruptions at all cost like checking email, social media, watching TV or reading news while trading.