SHARETIPSINFO >> Articles Directory >>First Focus on the Process, and then on result
Most of you must be wondering about making more profit from the trading and attempt to set goals to grab specific number of pips per week. But, here you are mistaken. You must always first focus on the process and then on result. Trading requires focus but, you must concentrate more on analysis of stocks and not on the amount gained by you. Maintaining focus can be difficult because you might get distracted from external sources. You may also, get disturbed mentally due to some negative fears aroused from trading. Do not be. Just focus on your process and consistent implementation of your trading plan. Your behavior should shun all the fears like - complacency, boredom, doubt, procrastination, denial - they will lead only to inconsistent and unprofessional application of your trading plan. And that cannot lead to long term consistent profits.
Focusing on the trading process can help you become more profitable when trading. It has many advantages then focusing on your profit. Your distraction towards profits makes it harder to make rational decisions and is what separates the professional trader from the average. When you focus on your profits and losses you tend to make bad decisions. This can be one of the reasons for you to quit trading and once you see huge profit then this is quicker. But, what can you do to stay focused and do not get deviated, here are some of the easy ways to concentrate more on your process than results. Always document the analysis and decision making process. Have clearly defined actionable steps that you need to carry out every candle to reach your decision to hold, enter, exit, or adjust your stop loss or profit targets.
Your focus on profits or results can be bad and can cause badly effect trade. You always try to turn your losses into profits. The bad part about that is it actually works against you. Stocks tend to trend, if a stock starts to turn against you if can fall for a very long time causing you to hold onto the stock for years hoping that you will eventually break even. It is always better to concentrate on how you are going to open or close a position. Develop your own rules to trading, when will you get in, when will you get out.
Developing a strategy and sticking with it can cause you to be much more profitable in the stock market then you could have imagined. You must stay focused on the process of making the swing change, not the outcome of hitting a perfect shot. That is thumb rule you must keep in mind. Try to keep the frustration levels to a bare minimum and expect to hit some unpleasant shots along the way. And most importantly, remember golf is a game that is enjoyed more with sensible expectations and a positive, willing-to-learn attitude. Yes. You have to maintain this attitude to sustain in the market. You must realize that, as a trader, your success comes from consistent application of your trading plan. Success comes from conducting analysis on a regular basis throughout the trading session, either on the close of each candle or on a price-alert as price reaches a certain preset level, and then acting appropriately to enter, manage or exit your trades.
If, you are trading for a very short timeframe, plan breaks into your session, to get away from the markets. Relax, recharge and refresh yourself, so that you can keep up this pace. But, if you a long term trader and line daily charts, then also you have to program relaxation gaps. In your case, you have a process that needs to be followed to come up with your decisions to enter a trade, exit a trade, or modify target or stop levels. If, your mind is cool then your focus on the process would be better.
As a professional trader, you just have to follow few steps. And use your alarms, documented checklist steps, to interrupt any unwanted thoughts, and return your focus to the business of trading. So, if you don't already have a checklist or flowchart set up for all actions that must be carried out during your analysis, then create one. And place in it reminders to monitor your thoughts, and reject anything that is unrelated to the current task at hand. Reject all the thoughts that are unrelated to the process of trading. And follow your plan with consistency.
For more articles click here
To Know About our Packages Click here
Click here for Indian stock market tips
