One way to make a living by trading is learning how to let go of trading — the letting go of the thought that we are always right. What most of us do when we trade is we keep holding on to trades hoping for the market to favor us. If our trade is going against us we fail to take a decision to get out of the trade under this hope. If it is going in our favor then fear creeps into us and we keep looking out when to exit the trade. Then keep crying when we find that it was a mistake to get out of the trade and we should have continued to hold on. If we are one of those traders who cannot let go of a losing trade then we cannot become a successful trader.
Now the question arises how can we overcome this bad habit and be successful in our trading. For this we have to let go of our ego. Often we can find most of the successful traders are those with very little or no ego, example introverts. We have to separate ourselves from our trades. The best way to do this is to follow a trading plan and never let our ego to come into play. If we avoid our emotions from coming into play and do exactly what our trading plan is telling us to do we can easily become a successful trader.
In his book ‘The Essence of Trading Psychology in one skill’ by Yvan Byeajee, the author says “One of the hardest decisions you will ever face in life is choosing whether to walk away or try harder”. According to him we tend to quit at the wrong time just when success is about to point its head.
