Knowing what to do is not the same as doing it. Your ability to teach principles that work in the financial market is not the same as profiting from those principles.
A profitable executing trader is one who does not just know how to spot profitable opportunities while analyzing the market, but actually profits from that move when it begins.
These traders have no problem executing their trades when they define the right entry point. They hop into the train without any form of hesitation. Many are caught in the rat race of knowing what direction price is likely to go but end up facing some psychological barriers that leave them on the sidelines when the moves actually occur.
What really can be said to be the underlying cause of this problem and how can it be solved?
Fear and Our Immobility
Becoming a profitable executing trader starts by spotting the existence of fear in your mind and releasing that negative energy as quickly as possible.
Fear has been the reason for the immobility of traders when actions are necessary. Your ability to execute a trade is directly correlated to the existence of fear or the absence of the same in your mind. This fear, most times, stems from your belief that the market is a threat, thereby creating hesitation when interacting with the market environment.
The Trader and an Independent Market
But is the market really a threatening environment? There is really nothing threatening about the market environment.
Most times, what we are really afraid of is our inability to do the right thing when necessary. Most profitable executing traders have overcome this fear and have learned to take the right action when necessary and without hesitation.
The market cannot do anything to you without your consent. In your interaction with the market over time, you felt pain due to the failure that stems from your ignorance of market principles or the right application of these principles. This pain has bred fear and a belief that the market is a threat, but that’s not true. The reality remains that you are the one who determines your outcome in the marketplace and only you can change it as you see fit.
Doing the Right Thing
If you cannot execute your trades properly, it is because you have not released yourself from the pain that results from the memories of past trading experiences.
Plus, your lack of self-trust is a limiting factor resulting in immobility; because you don’t have confidence in your ability to take the right action when the need arises.
These factors create fear and can reduce the effectiveness of an executing trader. I can say with confidence then, that a trader who has learned to separate the pain of past trading experiences from subsequent trades is set to see the better side of the trading game because that is the right posture our mental environment can assume as traders.
Featured Image Credits: UC Trading
