Trading Psychology: 5 Tips to Improve Discipline on Iq Option
You most likely know that emotions and trading can’t go together. If you are emotional when you trade, you have less chances to succeed, and you have the risk of losing more than you earn. In this article you will find 5 tips on how to boost your self-discipline, that can help you start trading in a calmly and rationally.
Discipline, not money
It may sound foolish but the first thing you have to do to when you enter the world of trading is forget about the money. You may have a question: How is that possible? But the trading is not only about money. The final goal of every trader is to gain as much money as possible because of the speculation. However, in order to get to the final goal, you have to focus on what makes money, not the money itself. Start thinking about strategies and trading plans, and, if you do everything correct, the money will come.
Someone is watching
Here is another tip you may want to use. It works for professional traders and beginners in the same way. The best thing is that it is very easy to put into use. If you know any famous traders, imagine the one you respect the most. If not, do some research on popular traders and choose any. The trick is to learn something about his personality, trading style and achievements.
Afterwards, imagine that when you trade, this man is standing behind you. This man can see everything about your trading and can judge you. This will boost your discipline and also lower the time you are not concentrated.
Make a list for trading
Write down everything that has to do with your trading process. What assets do you trade? Why do you trade? When do you trade them? Make a list of certain goals and a timeline to achieve them. Print all this information (have to be up to one page maximum) and put it where you can see it when you trade. If you have any doubts look at your list to remind yourself of your goals. If you have a good strategy and goals, this can help you to be a better trader than others.
One day rule for trading
Promise yourself to stay disciplined for one day only. ‘Today I will obey by the rules I’ve come up with and won’t do emotional trading’. This is all than you need to do. It is the same trick most artists use. When they are sad and can’t practice, they tell themselves to sit down and draw one straight line. However, when you are ready to practice of course you won’t draw the only line. You draw the first line then the second, afterwards you draw for several hours. Stay disciplined for one day only, but every day. Soon you will understand that it is much easier to be disciplined and it will become your habit.
Keep in mind that discipline is your friend. Even though it is not fun, it can save you a lot of time and money in the long-term. All professional traders have a good discipline. If you learn how to stay disciplined from the start you will find it much easier to follow the rules later on.