Are You Using These Circuit Breakers in Your Trading?

By: Nazy_Massoud

One of the things I often hear is that when traders get bored, they overtrade.

Another scenario is that when a trade goes against them, they take it personally and want to make all of it up on the next trade.

I also know traders who have positive P&L for the first few trades and then they give all or most of their profits up on the next trade.

Does any of the above sound familiar?

If so, you are not alone.

These behaviors lead to confusion and make you wonder what went wrong. Then it creates a lot of self-doubt and uncertainty about being in the trading business.

The truth is that we are all creatures of habit. If we pay attention, we notice our own internal signals/patterns and what they tell us. By paying attention to these signals, we can put in place the circuit breakers that will stop us from acting out and sabotaging ourselves.

Aristotle has a saying: "We are what we repeatedly do. Therefore, excellence is not an act, but a habit."

The circuit breakers you put in place enable you to have the kind of business and lifestyle that you desire.

By putting in place and following these circuit breakers, you are being responsive and thus giving yourself a competitive edge!

When you are reactive, usually you are not getting the best results. When you are responsive, you have an edge and a higher probability of getting the results that you desire…

What are some of these circuit breakers?

1. Take regular breaks
2. Stop trading when you notice you don’t have an edge
3. Don’t think of your gains as house money and gamble with it
4. Exit the trade when you notice you are hoping, wishing, or praying
5. Have an accountability partner

By creating circuit breakers, you are enabling yourself to get back in your zone and keep your momentum going.

Remember the story of the turtle and the rabbit. The turtle always wins. Why? Because the turtle keeps his/her momentum and keeps on going. Also, remember the power of compounding.

By putting the right circuit breakers in place, you will have the mindset necessary to create the edge needed to expedite your growth.

Josh Billings says, "It's not what we don't know that prevents us from succeeding, it's what we know that just ain't so that is our greatest obstacle."

Here is to making success your habit™.

By Nazy Massoud

PS. For more Mental Edge tips and reports on how to have more profitable trades, go to www.MentalEdgeTrading.com .

Copyright © 2011 Nazy Massoud

Nazy Massoud, a Wall Street Insider, shows traders, investors and hedge funds how to master the “Mental Edge” necessary to manage their Emotional Risk. These principles help them learn how to consistently make more profits. For more tips and a FREE report about "The 3 Biggest Psychological Triggers That Can Make Or Break A Trader" go to www.MentalEdgeTrading.com .

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