Webinar: Becoming a Better Trader – Q&A for Performance Improvement
Today, we kicked off the new year with a Q&A session. Traders asked a number of good questions pertaining to trading psychology, risk management, analysis& strategy, as well as other important aspects to successful trading.
We understand the difficulties of trading, which is why we’ve put together a variety of guides designed to help traders of all experience levels.
- Discussed what steps to take for identifying when to exit a winning trade
- How to overcome the FOMO (fear of missing out)
- Other topics pertaining to important facets of trader development
One trader asked about how to determine where to exit a profitable position. This was a topic we discussed last week as a matter of fact. The key is to use the same logical analysis you use for deciding when to enter a trade. For example, if you bought the euro at support, where is there is resistance which could stop price from moving higher? For an in-depth discussion on this topic, check out last week’s archived webinar.
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Another trader asked about the pain involved with missing an opportunity, or ‘FOMO” (fear of missing out). The very first question you have to ask yourself is, “did I really see the move coming, or am I experiencing hindsight bias?” Often times, you will realize that there was nothing in your analysis which told you to expect such a move to happen, or to the extent it perhaps unfolded. In this case, you simply didn’t have anything really pointing towards the move you missed, and thus you can’t beat yourself up over it. Can’t catch them all.
Now, if your analysis did suggest you should have made a trade, but you didn’t, then you need to dive into why you didn’t. What caused your hesitancy? Often times, traders trade with too big of a position size, and so when a set-up triggers, they hesitate because they feel compelled to take on more risk than they can handle. A common, but fixable problem. There could be other factors, as well, but the bottom-line is that you take a deep look into why, so you can make the necessary changes.
For the full conversation, please see the video above…
Past recordings you might be interested in:Creating a Trading Plan; Handling Drawdowns; Risk Management; Analysis, keeping it simple; 6 Mistakes Traders Make; Focusing on the Process; Building Consistency; Classic Chart Patterns, Part I;Classic Chart Patterns, Part II
---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.