|
Your own personal psychology is a big cause of second guessing. Second guessing is the practice of reinventing one’s trading approach and or methods to suit the day or short term rather than the longer term. Our personal psychology as represented by our emotions of the moment and our mood swings guide us in the tasks we must deal with every day. We cannot change this as our emotions are inexorably connected to our own survival. However, our emotions are of the present and affect short term situations. We can handle one problem in a certain way on one occasion and handle the same problem entirely differently on another occasion. This may work well in the circumstances of every day life. However, with trading this practice is fatal. Ongoing market analysis is always cyclical. If you allow your emotions to rule your trading as you would your survival, you will react differently to the different parts of the cycle. This will lead to a constant reinvention of your trading methods on a weekly or even daily basis.
Build Your Trading provides automatic effective method rules and consistency. All trading management methods rely on consistency, mainly because the mathematics in them work on percentages. If the method rules continuously change possibly resulting in selective trading, these percentages can lose relevance.
|
Emotions, inconsistency and second guessing can lead to selective trading. Selective trading is the practice of trading only a percentage of available trades based on criteria other than trading method rules. For example, if a trader experiences a losing trade there may be a temptation to skip the next trade on the emotion caused by this experience. Sometimes in trending markets profitable trades and losing trades may alternate. The above practice may effectively select all the losing trades in a series of available trades.
Build Your Trading provides method rules automatically that allow you to be objective rather than subjective with your trading.
Objectivity is an essential ingredient for successful trading. Build Your Trading provides a unified and holistic approach to successful trading. This approach is automated, scientific, free of emotion and is consistent in that there is an implementation of orderly trading decisions. Build Your Trading operates efficiently in the background of your existence and will not require your constant analysis and surveillance. All you will need to do is maintain your equipment. This is how it overcomes your personal emotions.
Build Your Trading runs on a strategic plan. Any business requires a strategic plan. The Build Your Trading plan considers all the inputs necessary for you to achieve your trading goals.
|