Three Steps To Eliminate Trading Negative Pattern
How to overcome negative trading patterns should be the goal of any trader who has progressed beyond the stage of seeking the holy grail.
Eliminate Negative Trading Patterns
This is the basic difficulty that drives a large number of people to seek professional assistance from psychologists.
Thus, what is the true nature of the issue?
To be sure, understanding problem patterns is crucial for transformation, but it is not sufficient.
I have understood for a long time certain behavioural tendencies sabotage my trade, yet that knowing has made no difference whatsoever.
FOREX TRADING IS SIMILAR TO AN ADDICTION
The issue with addicts is that they are frequently well aware of their difficulties. They are aware.
What fluctuates is their emotional attachment to the implications of these issues.
To some extent, all traders, whether lucrative or not, are addicts: we act or respond out of habit.
Recognize our poor trading habits and maintain the awareness necessary to prevent and modify them are two distinct problems.
I am frequently disappointed by my failure to alter my negative trading habits and behaviours, as well as my perverse proclivity to repeat my costly errors.
Although these recurrent tendencies are self-defeating, this does not mean I feel compelled to ruin my trading.
So How Can We Eliminate These Negative Trading Patterns?
While we are all unique and each of us may experience a somewhat different process of change, the process or structure that must be followed will be universal and applicable to all aspects of life when change is sorely needed.
A three-step method must be performed in order to break unfavourable trading patterns and habits.
Also Read: How To Earn A Consistent Pips in Forex Trading
1: Recognition of Patterns
Recognize that you have a problem before you can begin to change your negative trading behaviours.
If you are a beginner forex trader, you are probably still looking for the holy grail trading system or indicator and believing that they are the key to your forex trading success, and you may be unaware of your negative trading patterns and behaviours.
Only later will you find you have been barking up the wrong tree.
Recognizing poor trade behaviours is, in some respects, the most challenging stage.
It is quite difficult to change a terrible trading pattern if you do not detect it in real-time trading situations.
The operative term here is "real time."
You must be able to see what is occurring and intervene immediately before the mental process activates the resulting action.
So how do you go about doing that?
Keeping a trade journal is a good idea.
If you do, you will see settings that elicit issue patterns, as well as their correlations and implications.
By maintaining extensive entries in your notebook, you may discover that your habit of impulsive, revenge trading following a loss is preceded by heightened physical tension and verbal expressions of dissatisfaction.
This enables you to use the stress and emotional venting as indicators that your previous habit is likely to recur.
Keeping a record of your feelings and activities is incredibly beneficial for identifying the patterns that set you up for success or failure.
Maintaining a proper trading journal is one thing I have consistently failed to accomplish for an extended period of time. I did it half-heartedly at first, but I have realized that when you write down your thoughts and how you are feeling at the time, you actually "think" about what you are doing, which can improve your trading.
2: Disruption of a Pattern
After becoming familiar with the triggers and cues associated with problem trading patterns, we may be at a loss for what to do next, but we can deliberately choose not to repeat the pattern.
If my trend is to enter high-risk trades following a large victory, I can choose to exit the scenario and obtain a fresh viewpoint.
Also Read: How to earn consistent pips in forex
Thus, how can you achieve this pattern disruption?
Consider a moment when you did something you should not have done and ended yourself losing $15,600 in a single day.
forex trading loss
Do you recall what occurred? What action did you take? What resulted from that action?
If you can clearly recall the results of those patterns, you will be able to break free from those trading habits/patterns.
Once a trader becomes aware of the implications of that terrible deal and how he or she has lost 50% of their forex trading account, the trader regains control and puts a brake on automatic trading behavior patterns.
What occurs is that you begin to despise your previous ways. To express it in a Christian context, it should be comparable to "rebirth"... The old has passed away and the new has arrived.
Once you have identified the problem pattern as an adversary and vividly reminded yourself of all the ways it is cost you money and grief, it is much easier to prevent it from resurfacing in the future.
3: Substitution of Patterns
After disrupting a pattern, it is vital to experiment with something new.
You see, once you begin to eliminate something from your life, a void must be filled.
The alcoholic in our preceding example may opt to see a friend or speak with and make friends with non-drinkers.
A disgruntled losing trader tempted to place greater transactions to recoup her losses might instead take a break from the computer and engage in biofeedback exercises until she regains her composure and focus, or play a video game or watch YouTube and learn to speak Japanese.
What is the purpose? Substitute anything else for the void!
The objective is to repurpose the triggers of the old coping habit as triggers for more productive coping.
Additional methods include imagery and mental rehearsal...
These are effective methods for developing new replacement patterns.
For instance, before the trading situation begins, the trader may deliberately imagine in great detail a market circumstance that has lately produced emotional devastation.
In her mind's eye, she will observe herself succumbing to the same temptations, but then envision herself restraining this inclination and engaging in more ethical trading conduct.
By practicing the desired trading behaviour prior to the market session and monitoring for triggers throughout the session, the trader increases the likelihood of successfully breaking free from her old habits.
Therefore, what is the trick to making this work? What is required?
The answer is repetition.
That is the critical factor in making it work.
Habits are formed by repetition. Repetition is the basis of habits. Habits are ingrained.
You want to establish desired behavioural patterns as habits. This means that you must repeat successful trading actions several times...many, many times...until they become second nature to you.
However, there is one significant caveat.
You must have the DESIRE to do so. Without motivation, you will be unable to succeed.
However, motivation will soon become obsolete once those profitable trading patterns become second nature to you.
While mental rehearsal helps expedite this process, we must ultimately practice the transformation process on a daily basis in real-world situations.
CHANGE POSSIBILITY
Each trading day presents you with the option of repeating your previous trading blunders or making a change by following the three procedures outlined above.
I am committed to personal growth and am aware that I will not profit every day I trade...that is the nature of the forex market. However, every day will be a "win day" if you begin changing your trading behaviours in the right way rather than repeating your previous negative trading practices.
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