Is your SPEED killing your trading?
How fast do you throw your hat back in the ring after closing a trade?
This successful trader has an overall average P&L of €3.25.
However, there are 25% of his trades that are returning -€8.5 and these trades have a common theme.
They are all entered within 1 minute of a previously closed-out position.
Emotional baggage can be carried forward into a new trade, preventing you from your best rational thinking and making a huge impact on your profits.
Many times, our irrational trades are the biggest blocker to our success. Trading too quickly is often the culprit.
Here are some the reasons you might jump back into the market too quickly
- Your last trade was a loser and you are revenge trading to win it back
- Your last trade was a winner and you want to re-create that feeling of invincibility
- Market volatility is increasing and you don't want to miss out on a move
Every trade needs a decent setup - don't let your discipline slip and enter irrational trades.