Trading is a job that required full focus attention. It requires you to be analytic of your own and self conscious awareness. In everyday of life we make mistake. Everyone does, but did you learn them not to repeat them ? Yes most of us does. But some don’t , because they cannot remember what did they do wrong. It is a uneasy feeling when analyzing your own mistake and make a journal out of it , what lesson did you learn on those trade. Personally, I think every trade is a learning process. Trading is always a new territory, we are doing a job on an uncharted area and required careful planning and risk management.
Once in a while I do make new mistake, but quickly take a grasp of it. Learn from it and make sure it becomes a reminder as part of your next trading plan. Some people have problems in accepting losses , in fact its good for you. There is always a reason behind everything we do in Life. That is what we called experience. Having an experience in trading is the best way to get your self more skilled and more in tune with the market. As I said, the market teaches you to be good at what you do, don’t blame on it, don’t even blame your system. Take it positively.
WHen I trade the Forex market, I trade them like a game. I said to my self and implement them in my plan. ‘ My goal is 2 trade per day’ and thats it. Once my trade completed for the day, I am done. I am happy and sometimes continue my game play on my PC. Even if I lose in the game, I know I am still happy I make money from trading. I never take them seriously like my life depend on that money. I just enjoy them.
I learn this through my mistake in trading back when I was still novice. I was so serious about everything, including trading. I even push a trade when there is no setup. I lead to believe my self that taking small trade will definitely be a winner and never believe to accept losses. And with losses after losses, I learn that the initial feeling I had in trading was a key component to a disastrous mindset in trading. So I was never in the zone to begin with before trading, and all happen in Planning! The equation becomes a plan to fail and a trade plan to loss.
I had to rediscover my self by self analyzing those mistake. You may not like it seeing that loss over and over again. But it was not the trading setup but it was How I end up planning with it.
When I analyse them this is the question I ask my self.
Was I positive that day ?
Am I ready to take losses that day ?
Why did I take the trade ?
Was it part of the plan ?
Did I spent enough time doing analysis ?
Was the fundamental side of things was part of the plan ?
Was it an Impulse trading ?
AM I too trigger happy ?
Was this a trading habit ?
What did I learn from that trading ?
What did I do best ?
What should have improve or changed ?
Will I do it again on the next trade ?
It is best when re analyzing your bad trades when You are relax and calm but not when you are still angry about the trade. Remember , a positive feeling is a positive feedback, it creates creative ideas from your mistake to improve in trading. As I said before, when something goes wrong, it is good for you to learn. It even teaches you to accept fate. There is always a REASON behind everything we do in life. Always.
SO my advice is , look back what you did wrong. Take it positively. Ask Why about your self before asking why taking the trade. Remember, trading is 60% psychology. The answer is always been there inside you, You just need to get it out!