Once you are in the trade you are always under pressure, don't you?, so how can you ease the pressure ?
1. Proper Risk Management
If you will cut your losses than this eases pressure. however, behind your mind you are always focusing that your money is on line, and this does not help, a well thought out entry trade will give you more confidence, you should gradually take profits, so when trading multiple lots, you may want to gradually close portions of your trade. for example if you have traded 4 lots, you will close the first lot for 20 pips, second lot for 30 pips, third lot for 50 pips and letting the final lot run with a trailing stop profit. having banked profits gradually gives you confidence, and the effects of emotions are reduced.
2. Controlling Your Impulses
When your entry orders are executed, how can you be calm, relaxed and in complete control? you often abandon your trading plan and act irrationally and than panic and trade when you did not have to, the best way to gain control is to be organized in your daily activities, and this often filters into your trading life. you MUST impose structure and follow it, so for example one way to do this have a detailed trading plan, "PLAN YOUR TRADE AND TRADE YOUR PLAN".
3. Be Objective
When your entry orders are executed, often it is very difficult to be objective, and now you start thinking emotionally, the fear factor sets in, what if i lose? what if the profits turn into a loss? how will I pay my bills? how will I pay my debts? how come I can buy a new car ?, if…if…and if. so when you focus on your emotions, you start to be panic and what you really want to do is to be objective in your though process. you are using your conscious mind, therefore the conscious mind is the most important of all, for through it the ego governs and can also govern the subconscious mind.
1. Proper Risk Management
If you will cut your losses than this eases pressure. however, behind your mind you are always focusing that your money is on line, and this does not help, a well thought out entry trade will give you more confidence, you should gradually take profits, so when trading multiple lots, you may want to gradually close portions of your trade. for example if you have traded 4 lots, you will close the first lot for 20 pips, second lot for 30 pips, third lot for 50 pips and letting the final lot run with a trailing stop profit. having banked profits gradually gives you confidence, and the effects of emotions are reduced.
2. Controlling Your Impulses
When your entry orders are executed, how can you be calm, relaxed and in complete control? you often abandon your trading plan and act irrationally and than panic and trade when you did not have to, the best way to gain control is to be organized in your daily activities, and this often filters into your trading life. you MUST impose structure and follow it, so for example one way to do this have a detailed trading plan, "PLAN YOUR TRADE AND TRADE YOUR PLAN".
3. Be Objective
When your entry orders are executed, often it is very difficult to be objective, and now you start thinking emotionally, the fear factor sets in, what if i lose? what if the profits turn into a loss? how will I pay my bills? how will I pay my debts? how come I can buy a new car ?, if…if…and if. so when you focus on your emotions, you start to be panic and what you really want to do is to be objective in your though process. you are using your conscious mind, therefore the conscious mind is the most important of all, for through it the ego governs and can also govern the subconscious mind.