It may seem a little counterintuitive at first, but to truly control your trading and trading mindset, you must first learn to let go of the need to control the market. A trader often tries to control the market, but he doesn’t even realize he’s doing it. If you don’t know well, you can’t control the market at all. So if you’re trying to do that, you’re probably not just bleeding money, but you’re probably very frustrated and desperate with your trades. And then you have to decide what to do if (probably) that is the case.
Once you understand that there are things in life and markets that you cannot control and there will always be some degree of unpredictability, you learn to focus your energy on what you can control. You can learn every punch, kick, and block just like a martial arts master, but in the end there are aspects your opponent can never control. As traders, we “fight” on the financial battlefield against many different opponents. You are most likely to succeed by having a good plan of attack, preparing a good defense, and planning for the unexpected. We do our best to prepare and steer the battlefield of the market, but we can’t control everything. You can only control yourself, what you do and don’t do, and how you handle each situation and situation.
Self-control is often the determinant of successful transactions, successful relationships, and life in general. All good relationship books teach you that the only thing you can control is yourself. Even though it looks like it is, it is not under our control. By working on yourself you can learn, adapt and be successful in all kinds of relationships, but first you have to let go and be at peace with what you cannot control. will be
It takes years, sometimes decades, for most traders to understand this same truth. We can only control ourselves, not the market. This mistake can cost traders thousands of dollars in losses along the way and cost them countless slow, frustrating, and sleepless nights.
Where does it really fit in the market landscape?
There are literally hundreds of thousands, possibly millions, of variables influencing the market. From the release of economic news to the market opinions and sentiments of various traders, it is impossible for humans to “control” or collect and make sense of that amount of data. The only way to truly understand it is to learn to analyze the market footprint. price action.
You need to realize that you are just one participant in a huge sea of competitors/enemies on the “battlefield”, all of whom are trying to bring back prizes (i.e. money) from the marketplace. The market, like other competitors within it, cannot be controlled. they don’t know you they don’t care about you
Our sole goal and mission is to successfully execute our plan, execute our trading edge with as much discipline as possible, and protect our butts through risk management along the way.
Remember: You are the only one in the market who is responsible and in control of you. So don’t waste time on things you can’t control.
Our Innate Needs Must Be “Controlled” and How It Works on Us
Traders often try to control everything in the market except the only thing they can control themselves.
Humans, in general, are really, really bad at self-discipline and self-control. They try to control others (because controlling themselves is uncomfortable and difficult) in order to make themselves feel better. In trading, people do the same thing, but they try to control the market, not others.
Being in control is really all about fear. We feel fear when we are out of control. This is why some people are afraid of flying. They can’t control what’s going on, so they’re just passive passengers in the vehicle, even though it’s the safest way to travel. Similarly, in trading, people give in to their fear of losing and start trying to control the market by overtrading, moving stops and targets around, taking too many risks, and so on. But as soon as the market does something it doesn’t want, that emotion turns to anger and even panic.
Markets can only be controlled by losing the need to control them. Please read the last sentence again. You must remain at peace with the things you cannot control and simply abandon the innate need and temptation to act as if you could control the uncontrollable.
When you fail to plan, you plan to fail (Benjamin Franklin)
If you want to avoid falling into the cycle of trying to control the market and not realizing that you are doing it, naturally trying to control the market, then you need to become a trade planner, not just a “trader”. . Please let me explain:
The only real way to avoid trying to control the market is to know if you’re doing it in the first place (which you probably are). Remember that if you are losing money across the board, you are most likely trying to control the market. We gave up trying to control the market long ago.
Second, you need to do some planning when you’re not looking at charts or live trading (become objective and clear-headed when planning). This is to have routines and plans to remind you to stay disciplined and control yourself. All traders should do this at least initially or if they are losing a lot. Because the market is like a wild wilderness of constant temptations to steal all your money, lulling you to sleep if you are not careful.
Remember: Success happens where opportunity and preparation meet. So if you don’t have a trading plan and a way around your own human psychic shortcomings, you won’t be successful.
4 core things we can actually control
What do we have control over when it comes to actually analyzing the market and executing trades?
- Entry and Exit – You can decide when and where to enter and exit the market.
- Risk Management – You can control your risk on every trade by adjusting your position size and placing your stop loss appropriately.
- State of Mind – Take control of your state of mind by planning your trades, understanding the markets and how they work, developing trading strategies, reading your daily trading affirmations, and avoiding screen addiction. In my article on the mindset of a winning trader.
- Business/Trading Plan – You can decide what you want to include in your trading plan. So make sure you know what to put in it and stick to it above all else. The most important thing in trading is self-control and discipline.
The easiest way to make sure you’re in control
Now, this next point may not come as much of a surprise to my regular readers, but it is worth discussing. Because this is the easiest way to keep yourself in control when trading.
The quickest and easiest way to quickly stop trying to dominate the market is to set a trade and forget it. This is just theory, but in practice it turns out to be very difficult. Because it is truly the definition of self-discipline and self-control. Can you set up a trade-up, then close the computer and walk away for a week? Try it out on a few trades and see what happens.
Conclusion
When we talk about “controlling the market and controlling ourselves”, most people get into the core question of why trading is not profitable. Financial market speculation, perhaps above all, is the ultimate test of your ability to follow a plan and ignore temptations. The lack of bosses makes it even more difficult. No one is held accountable. You don’t show up to work an hour late every day. It can get really bad at some point. No, when you lose a money deal or stop following your plan, no one will probably know except you. It’s incredibly difficult.
In short, this means you have to decide which version of you wins. Either an out-of-control animal version that cares only about the temporary illusion of being dominated, or a calmness that cares only about long-term consequences and plays the “game” in a way that ensures positive outcomes. You don’t want to pour money into the market over and over again, so sooner or later you’ll have to figure this out. Learning from someone who is already in your position and who has all this through a lot of trial and error can help you “jump start” the whole process. Or you can do it alone. My professional trading course provides a complete trading plan template, making the creation process much easier and faster. But whatever you do, you will find that the more you focus on yourself and on controlling yourself, the better your trading performance will be.
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