Trading psychology: What is the main cost of doing business as a Trader?
All businesses have costs and expenses for doing business.
So what is the main cost of doing business as a trader?
Software, education, and real-time data subscriptions? Nope.
Valuable market research or analysis such as planetary support/resistance levels and timing signals to give you the very best trading and timing advantage? Nope.
Most of my subscriber’s average daily losing trade is many times greater than my affordable monthly subscription rate.
So what is the main cost of doing business as a trader? It’s obvious. It’s your trading losses!
Remember, “losing traders think about how much they can make on a trade opportunity; winning traders think about how much they can lose!”
We must accept the fact that there will always be some losing trades and actually feel good when a loss is taken at a predetermined small percentage of capital. It is a normal cost of doing business. Taking a loss frees up capital to take advantage of other opportunities including your mental/emotional capital to allow you to think clearer and be more objective.
Trading can be counter intuitive. “Lose to win” is one of the core concepts to accept. If you haven’t downloaded my free e-book, “5 secrets to maximize trading profits and reduce stress,” go to my homepage and click on the link at the upper right side. You will also receive five follow up mini-lessons for five days regarding these five important concepts.
If you are using a winning trading plan and timing signals that produce a high percentage of winning trades, why should you care if you have to cut losses on some trades that don’t work? It is something that must be done at all times. Just one losing trade that is not managed properly with too much leverage can wipe out all the gains regardless of how great or amazing a trading plan or timing system you are using.
The key is identifying low risk, high probability trade set ups, keeping losses very small, such as no more than 1 – 2 % of capital per trade. Once a trade moves in your favor, take some initial profit at a percentage of the position, move stop loss to B/E, break even, and using a trailing stop loss once a trend is established to “let profits run” until targets are reached or the next turn time or reversal day. These are “essential skills” all experienced traders already know.
I hope you have found these tips helpful.
Daily timing reports are available for the E-Mini S & P, Gold, or Crude Oil. All daily subscribers may switch to any one of these three markets at any time on a monthly subscription.
Weekly timing reports for part time or swing traders are available for the E-Mini, Gold, Silver, Crude Oil, Eur/Usd, T-Bonds, or Bitcoin too. You may also switch to any of these markets covered during your monthly subscription at any time.
For experienced and skilled traders seeking the ultimate timing advantage and trading edge…….
Best of trading success,
© 2017 T.S. Phillips, Astro Advisory Services, LLC