Getting Over a Trading Slump: Manage Your Psychological Capital

There's one thing you can do okay so here's something for you guys. The psychology section in the training program, I talk a lot about how to just have rock-solid psychology, confidence, the right mentality, how to think about things long-term all that stuff, right? How to welcome your emotions. All those things.

But at the end of the day, nothing will give you more confidence than good results. Right? You're not going to be like those top psychology gurus that says "Oh, you can be a Zen Master." No. Well, when things things are going bad, you're going to feel bad and that's normal. And when you're doing well and trading well and seen results you're obviously going to feel more confidence. It's like sports. Which athletes feel more confident? Obviously the ones that are not only following correct process but are also seeing the results.

So one thing that you can do if you're in a slump is you basically you always do want to maximize profit potential, then think of a pure process. But sometimes when you're in a slump you might want to change your change your mind set and make it about managing your confidence during the slump.

And sometimes the best way to do that is to get some wins under your belt. For instance, lets say you got in a short trade or a long trade or whatever and you see a pretty big target for it. But it's not nearly at your target yet, it's giving you a few points of profit and just hang in there. Well usually I would say, no, do the right thing. Do the correct process and let it go to your profit target. But, if you're in a slump, it's nice sometimes to bag some winners, to ring the cash register at a time to get your confidence back up. So instead of letting this whole thing potentially reversing go back to break even and not give you a profit even though you called it right, if you're in a slump that's ok. Manage your own psychology too.

It's not always about maximizing your capital. There's something Jeanne Shaw, who is a great trading psychologist, she talks about psychological capital. Sometimes it makes sense to manage your psychological capital. Right? And it makes sense to bag a winner. Book the profit and feel good about it. Right? A couple those little ones can give you confidence that hey, I'm not just losing losing losing losing.

The key, though, is not to turn it into the habit were now you're always taking tiny winners just to feel good. And so, that's something you can do that helps. I used to be against this kind of thinking.

I used to think, no, we got a always do the right thing but you find it after a while you got a measure of psychology. It's funny that you ask this , me and Awais were having this conversation just a couple days ago and were talking about it. He was talking about psychological capital and I was like yeah, you know what, you have a point.

Sometimes it just makes sense to manage your own psychology, just don't get in the habit of always then trading incorrect process just a few emotionally good.

So only the times when you need it. Then when your psychology is back in gear then you can flip on the switch and just be all the correct process and be aggressive and all that.

The other thing about that is that even though taking them non purely correct exit might not be the most profit maximizing the long term for you in this instance, the confidence it gives you that you just ring the cash register changes your mental state. And since you're a discretionary trader and discretion is all about our mental state, in can actually end up being the highest profit thing long-term because if you haven't done it, but it was in a winner and usually stay negative and you don't see the next trade and you under estimate the next one and so on, and it becomes bad and you keep losing.

So sometimes it's might seem like it's not the best long-term action for account balance in terms of true process, but when you factor in psychology it'll help.

The post How to Get Over a Trading Slump appeared first on OpenTrader Pro Trading Blog.

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