Don't Let it Get to Your Head

If you dabble in the trading markets you'll hear a lot of people talk about not chasing losses, not losing your head when a situation gets bad and making sure you have a clear and defined exit strategy. This makes perfect sense, the psychology behind 'losing' means that you don't really want to lose that trade and so having the right discipline and procedures in place can cut those losses off early. It's important to remember that you'll never stop losses from occurring. Anyone that says "My strategy is so good it stops losses" is lying to you. Either that or what they really mean "My strategy gives ample opportunity to cut losses early.".
This is the crucial thing, being able to nip losses in the bum before they become a serious problem for your bottom line will mean you can focus your efforts on refining your strategy.

What about the opposite?

What are you talking about Mr Lay? Simple, there's so much focus on discipline when a situation goes bad, but what about when a situation goes well? A red mist can overcome you and before you know it you feel invincible. Your strategy's discipline and exit points should work for both when a situation goes wrong and when a situation is going well. This is a trade, remember, not a bet.

Pfft I know it all

Unfortunately, if you know someone that says this, you probably can't help them. The first stage is acceptance, if you can't accept that you don't know it all then its going to be a long, tough and expensive road ahead. There's one thing I know for sure though... That I'm just scratching the tip of the iceberg in terms of dos' and don'ts for trading on the betting markets.

Be Humble

When you're wacking out hundreds of pounds a day in profits, remember the pain of how you got there. It is important to stay humble, acknowledge the little things, appreciate them, and... Now this is beginning to sound like a sermon.


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