One Way to Fix Randomly Wrong Trades

Guy,

I am having a tough week. This weird cycle I have since many weeks ago keeps happening and I need to break it. Somehow, I will be upĀ  early in the day, then mistakes start happening. I have noticed that nothing is different about my psychology, and my thinking (NO revenge trading etc), but just randomly wrong. What can I do?

 

[Answer]Ah, the trick to this is NOT thinking those wrong trades will magically one day disappear. It’s all about recognising when you are about to do something not right and stopping yourself. For me, I like to ask myself if the trade I am about to place is 50:50 or the odds are in my favor. If it’s 50:50, then I know I am probably over trading – for whatever reason.

As for the 50:50 trades, think if the market in the middle of a range or moving through a quiet period with no outside influence. It’s little things like this that help you determine if a trade is founded on a good idea or a weak idea. Sometimes sitting in front of the screen all day creates a trap – you feel you have to trade or you see more trades than are actually there. This creates over trading and increases the seemingly random results.