DO YOU SELF COACH YOUR TRADING?

While some aspects of trading are simply out of our control, you can control your reactions to them. Some of your smartest trades may be the ones that you don't make. As you evolve as a trader, being your own trade coach will help you focus on the things you can change and detach from those you cannot.

Self Talk

How do you talk to yourself when you trade? Self-talk is the conversation we have with ourselves as we engage in a specific activity. It usually stems from our core beliefs about ourselves and the world around us. The importance of this internal monologue is that it not only reflects our thoughts and feelings, but also influences them. It's important to talk to yourself in a supportive way vs. being overly critical.

Here's an example of the self-talk of two different traders in the same XYZ trade that is currently losing money.

Trader A—"I'm losing money again. I knew I should have waited another day. Why is this always happening to me? If only I were smarter, this wouldn't be happening. I can't believe I did that again."

Trader B—"My XYZ position is currently at a loss. I have not hit my stop, so I will hold the position. It might turn around or it might not. I am managing my risk and following my plan."

Trader A's conversation is charged with emotion, making sweeping judgments that are not only about the trade, but also about the trader. They are blaming themselves and thinking that the losing position is somehow a reflection on them. This kind of self-talk usually does more to amplify the problem than to correct it.

Trader B's conversation is much more measured and less self-critical. The focus is on the status of the trade in relationship to the trade plan. There are not global statements like 'always' or 'never'. Trader B is affirming the reality that some trades make money and others don't. There is no judgment about intelligence or skill as a trader. They are affirming that the most important thing is that a plan is in place and being followed.

Want to explore our trading resources? Sign up for a free Guest Pass

Managing Your Expectations

Take some time to examine your trading expectations. Many newer traders believe there is a market code that can be cracked that will keep them from having a losing trade, a losing week, or a losing month.

The reality is that there will be losing trades. How you choose to react to them will go a long way in determining your trading outlook and, potentially, your success.

Setting up a Trading Environment

It is a good idea to dedicate an area, and possibly a specific computer, to trading. Dedicating a specific space and time for trading will help you maintain the discipline and focus that may make you more effective.

Visualization

It is common for peak performers, athletes, actors and others, to visualize their performances and outcomes before the event. See yourself building a plan and then following it. See yourself relaxed and alert. See yourself closing profitable trades according to your plan and closing losing ones according to the plan as well.

Conclusion

Trading is challenging enough without getting in our own way. Being your own coach will help you be honest about the state of your trading and help you make the right adjustments.


Check out the ProTrader Bootcamp Class = https://www.mojodaytrading.com/courses

Featured Posts
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square

Stay Connected

The information contained on this website is solely for educational purposes, and does not constitute investment advice. The risk of trading in securities markets can be substantial. You must review and agree to our Disclaimers and Terms and Conditions before using this site. Mojo Day Trading nor ProTrader Mike is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. 

Mojo Day Trading and ProTrader Mike cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Individual results may vary, and testimonials are not claimed to represent typical results. All testimonials are by real people, and may not reflect the typical purchaser’s experience, and are not intended to represent or guarantee that anyone will achieve the same or similar results. 

Mojo Day Trading and ProTrader Mike in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Mojo Day Trading and ProTrader Mike accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

© 2012-2021 The Perfect Trading System, LLC.   All Rights Reserved.