(Last Updated On: April 24, 2019)

You have a certain set of trade setups that you watch out for, and when that happens right, I would suggest you don’t worry so much.

Remember just now when I said earlier on, focus on the process, focus on the workflow alright.

So which means that because right now psychologically you are worried about trade on a trade on a trade basis, so when these trade starts to present itself, then you are so uncertain should I take this, should I not take this.

Then you seem to keep on finding conflicting reasons to either to get in or to not get in and then you become an analysis paralysis in a way.

So I want you to have this particular thought in your mind, whenever before you take a trade, okay, just ask yourself this very simple question okay, right now at this point in time alright do I think that there is a higher chance, more than a 50% chance alright of this trade hitting my planned profit target before it comes to touch my stop-loss. Do I think there’s a more than 50% chance?

Now there’s a lot of different ways of measuring this 50% chance right, okay so you just have to ask yourself straight away that.

Doesn’t matter what kind of strategy you use first, just ask yourself okay if you think that there’s a more than 50% chance it will go to my profit target before it touches my stop-loss, that’s the most important thing right because obviously, you don’t want to get into a trade, not to say. Ideally, the trade shouldn’t touch your stop-loss before going to your profit target because it would mean that you already exited the trade before you can be money alright.

So ask yourself, is there more than 50% chance of this trade touching my profit target before it comes to my stop-loss.
If there’s a more than 50% chance okay, take it first, get into the flow okay. Take it then you follow closely profit target and a stop loss.

So you keep on trying to do this. That’s the only way to overcome your psychology a lot of time is that you have a plan you just keep on following it.

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Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

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