Good trades most often don’t come at once. The probability of closing a successful transaction depends on many factors, including the market conditions, trading style and strategy.
The ability to wait and concentration are two of the qualities that help traders become successful. This is why rushing is one of the most harmful enemies of a trader.
Become the Master of Any Situation
When a trader is not very disciplined, or is ignorant, they may sometimes get away with rushing. Haste is however easy to overcome, especially if you are aware of its nature and understand ridding yourself of it will be good for you, especially in the long run.
In this article, we’ll discuss a simple “15 minute rule”. If you manage to follow it, it will allow you to close many good transactions without hurrying and you will always have the situation under control.
It should be noted that these recommendations are however most useful to traders who make numerous transactions during a trading session.
Use the Process
The 15 minute rule is often used in everyday life when people are thinking of starting something new. Whether it’s exercising or reading. In short, it goes like this:
“If you can’t manage to get going with doing something you want to or know you should, try it anyway by starting to spend only 15 minutes doing the activity.”
This process will capture you somehow, and the next time it will become much easier to execute the same action. Eventually, the activity will become a part of your daily life seamlessly.
Quality Is Always Better Than Quantity
This rule is applied to trading as follows: watch the charts and trade in your mind for 15 minutes. Look at different assets and indicator values, but only open transactions in your mind.
The idea is that you will gradually learn to resist making as many substandard deals as possible, as these are often driven by the subconscious mind. Get rid of the urge and don’t try to force a square peg into a round hole.
This process will help you understand that quality is always better than quantity. Applying the rule will help you acquire the habit of only opening high-return transactions.
Trading Traps
The 15 minute rule will help you fight a number of typical situations, three of which are described below:
- A sharp movement in price, after for example a news release, may create the impression that a trend is starting, causing the trader to worry that they may lose out on the opportunity to make a quick profit, and they open a deal.
- Although an indicator trading strategy has not yet given a proper signal, the trader is impatient and opens a transaction.
- The trader closes a position at a standard price. Which does not fulfill the specified condition in the future, he closes at a price that is unprofitable for him.
Does any of this sound familiar? These traps are always there and many traders fall for them, while some never manage to escape this mindset. That does however not mean that you can’t break this pattern and make a much better profit on your trades.
Don’t Miss and Don’t Lose
Traders always have to reach two important goals – don’t lose your money and make a profit.
Successful traders agree that the first step in mastering trading is the ability to trade stably, even if the end result is breaking even.
Trading success depends on your ability to wait and resist the temptations mentioned above. A very effective way to develop your trading skills is not only to analyze the mistakes you make, but also to prevent them from happening again in the future.