In this piece I will lay out how I am currently managing what I have defined as trader risk in my post here: https://exchange.realvision.com/post/14-risk-philosophy---step-two-identifying-risks-the-next-step-to-developing--5f69135272a3831ee9f0f9c4
The first trader risk I will discuss is the psychological factor. The three psychological factors I am most wary of and trying to manage are confidence, motivation and mood. In regards to confidence, I am working on my trading plan (this blog is part of the work I am doing on my trading plan in regards to crystallising my thinking on my trading) and gathering live trade data to give me feedback on my trading approach. I am also going through Van Tharp’s Peak Performance course again to work on my psychology.
Other techniques I have tried in the past in regards to managing confidence, have been visualisation and verbal affirmations. The staples of any self help book! I have found that they do seem to have an impact on my psychology, but I’m not sure if it is because of some inherent magical property of these techniques, or rather the discipline it takes to actively ‘force’ myself to think about trading success on a regular basis and focus on this rather than the innumerable distractions of the day. Perhaps it is better to think of these techniques as regularly stretching the body. Going through these techniques will prepare the mind (stretch it) and keep it limber, ready to act, but it is the actual action of trading and working on it that generates the true confidence (when your trading system actively generates favourable performance with live capital). Similar to how stretching may keep your body ready, but it is only the process of working out and seeing improving performance and results that generates true confidence in your body. Perhaps I will try these techniques again some time!
Welcome to the Classical Charts and Swing Trading blog (The CCST Blog), where I am documenting my trading journey and the lessons I have learnt so far. For more content, please visit my blog at https://exchange.realvision.com/post/ccst-blog-table-of-contents-please-see-links-to-each-post-in-the-comment-se--5f5ea1e8f8e9773f2bf1cf1e
A big goal for this blog is to become a place where like-minded traders can interact, learn from each other, share their experiences and help each other along their journey. So I would really like to thank those of you who have taken the time to read through my blog posts, and even left a like or a comment. Although I mainly write to increase my own thought clarity on trading, it does motivate me to know that there may be a reader or two out there who enjoys my writing and I hope you'll share your journey with me as well!
DISCLAIMER: I am not giving financial advice. I'm a full time engineer, not a professional finance guy, so please do your own research!