Saturday, May 30, 2015

Trading should be fun

Do everything you can to stay happy. This could be a life lesson post, but I am talking specifically about my trading philosophy.

Too many traders are in pain. I used to be, constantly. Over time I realized that when you are in pain, you make bad decisions. You chase trades because you fear the pain of missing out on a trade. You micromanage your positions because you fear the pain of giving up that small gain. You let a stop get too big because you fear the pain of that trade reversing once you exit. All these bad decisions go back to fear and pain.

Now I do everything possible to make myself happy as a trader. I have created a trading routine. Simplified my process. Kept small focus lists. Adhere to strict position sizing and risk management rules. Interact with other traders. Teach. Enjoy trading.

These are but a few of the things I have done to keep trading fun and limit pain.

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