Spread Betting: Trading Discipline
September 24, 2009 10:05 amVideo
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- Trading plan for GBP/USD on April 16. Simple tips for beginners April 16, 2024
- Trading plan for EUR/USD on April 16. Simple tips for beginners April 16, 2024
- Overview of the EUR/USD pair. April 16th. In plain text: The ECB will cut rates in June April 16, 2024
- Forecast for EUR/USD on April 16, 2024 April 16, 2024
- Forecast for GBP/USD on April 16, 2024 April 16, 2024
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- Outlook for EUR/USD on April 16. Another boring Monday April 16, 2024
- The euro hardly has a chance to rise April 16, 2024
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- Video market update for April 15, 2024 April 15, 2024
- Trading Signals for GBP/USD for April 15-17, 2024: buy above 1.2450 (21 SMA – 0/8 Murray) April 15, 2024
- The dollar has not reached its potential April 15, 2024
- Analysis of GBP/USD. April 15th. Retail sales in the USA allow the dollar to continue rising April 15, 2024
- China’s Q1 GDP growth next on the Asian calendar – Preview April 15, 2024
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- Trading Signals for ETH/USD (Ethereum) for April 15-17, 2024: buy above $3,125 (200 EMA – 2/8 Murray) April 15, 2024
- Analysis for EUR/USD on April 15th. Monday – a tough day for the euro April 15, 2024
- GBP/USD: trading plan for the US session on April 15th (analysis of morning deals) April 15, 2024
Even with a trading strategy that yields a high success rate it is still possbile to lose money overall if the losing trades are large and outweigh the positive trades profits. The following pointers will help you maintain good trading discipline.
Only Risk Money You Can AffordIt is vital to know how much money you are risking and that you are comfortable with the sums involved. If not the pressure from the fear of unaffordable losses will lead to rash and imprudent decisions.
Trade Objectively with Measureable CriteriaImplusively trading every feeling nearly always equates as bad trading. If you trade on a baseless whim, when the position moves against you you have no idea what to do, should i let it run or not? There is no answer because the reasons for trading were so vague in the first place…
Define entry and exit positions in advanceIf your trading studies have shown there is value at entering at a cartain level in a share set that as your entry point and then wait for it to happen: be tough on yourself and do not try and jump the gun… you will be a lot happier later! You will also need to define two exit levels: one for if things go well, the other for if things dont. Always stick to these!
Admit you were wrong…You cant win every trade, sometimes you have to admit when you are wrong and then learn the reasons why..
USE STOP LOSSESA stop loss enforces your exit level and will aid you to cut your losses. If you spread bet with a controlled risk/guaranteed stop loss account this will protect you even in the most adverse of market moves. Do not move your stops further away to avoid stopping out, this only increases your losses and is usually a mistake in the long run. Much better to take the loss and make it back on your next trade!!!Run your profitsUsually people tell you to cut your losses and take your profits. Set yourself a target, and some times dont be too tempted to take your profits as soon as they appear…!
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