Talking Points:
• We usually think of bad habits in the course of our regular life - social gaffs, exercise, smoking etc.
• Bad habits easily filter through to our trading, and the results can be quite costly
• Breaking these bad habits is crucial, and there are ways to help instigate the change
Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.
Does habit get in the way of a thorough evaluation of market opportunities? Habits are developed to help make our lives easier. Repetition develops after a process has been establish so that we can more quickly execute decisions and moves. This can be useful in life and in markets, however it can also sabotage us on both accounts. Bad habits are the bane of many people - from smoking, poor socializing, under-exercising, and many other repeat issues that undermine our progress and happiness. In trading, bad habits can similarly frustrate us and carry a more direct financial cost. Recognizing our bad habits is the first step; but beyond that, breaking them requires better self-assessment and perhaps some pen and paper. We discuss ending bad trading habits in today's Strategy Video.
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