Trading Composures

Trader | Trading Psychology Coach | Meditation Teacher | | tweet on probabilistic thinking and emotional management in trading | 18+ years in the market

[Trading Composure @TradingComposur]

Risk management sounds so simple in theory.

In practice, it's one of the hardest things to do.

Especially for newbies.

[Trading Composure @TradingComposur]

Your goal as a trader is to protect your money first.

[Trading Composure @TradingComposur]

The market will force you to either quit or confront yourself.

[Trading Composure @TradingComposur]

If your confidence has been damaged by a big loss, you will have to contextualize and reconcile the pain before you, once again, risk any money in trading.

Writing and meditation/reflection are great ways to do that.

[Trading Composure @TradingComposur]

Surprisingly or unsurprisingly, trading gets much (much!) easier when you don't need the money.

Find a way to not need the money.

[Trading Composure @TradingComposur]

Don't focus on making back your losses.

That's a gambler's mentality.

"I have to be made whole again right now."

The better approach is to focus on trading well.

If you do, you will make back what you lost -and more!

[Trading Composure @TradingComposur]

Don't ever let winning trades go to your head, or losing trades to your heart.