Don't let Captain Hindsight mess with your trading
Captain Hindsight is bound to get in your head.
Whether you’re just starting out or you’ve been trading for the last 10 years or so.
He is going to question you with two simple words.
And these two words, can really cause a negative impact on your trading portfolio.
In this short article, I’m going to warn you about how he’s going to uppercut your mind and most likely cause havoc with your trading.
This way, you’ll know what to watch out for.
A dangerous two word question to interfere with your trading
What if?”
Here are some…
“What if the market is in a bubble and I buy too high?”
“What if I’m wrong about this trade?”
“What if my trading strategy worked then, but won’t work now?”
“What if the market is in a period where I’m just going to take losses?”
Whenever the captain whispers these questions, you’re going to feel vulnerable and start second guessing your trading system, strategy and skills.
Succumb to the Captain and he’ll be back stronger and more powerful than the last time.
Here are THREE ways to beat Captain Hindsight before he returns
ACTION #1:
Extend your back-testing
So you have a trading system that you believe works… Prove it.
Go back and re-test different markets and jot down every time the system lined up.
Record every trade, including the costs and the statistics and prepare yourself for what is to come.
The more you back-test your system, the more markets and environments it would have weathered and endured. If it came out with all time highs on your portfolio, it’s a winner.
Captain Hindsight – won’t have anything on you – with a decent track record…
ACTION #2:
Drop your risk
The most common way for a trader to feel emotional, is when they have a lot to lose.
The larger your trading position, the more desire to win and the more fear you’ll have to lose.
This is why greed, fear and panic are the most ongoing reasons for traders to annihilate their portfolios.
Trading is a get rich slowly but surely game. And when you accept the gains and losses, you won’t care what the Captain has to say.
ACTION #3:
Step away from the screen
Not only will Captain Hindsight creep in before you take a trade. He’s bound to enter your mind while you’re in the trade.
“What if you’re wrong about this one?”
“What if you get out of your trade now while you’re in a profit?”
“What if you take a small loss, because it looks like this trade is a loser?”
The best action to take, when you’ve entered your trade with your trading levels (Entry, Stop loss and Take profit), is step away from your trading account.
Distract yourself by getting a drink, water your garden, take a drive or do other work.
The less you’re glued to the screen watching your trades, the less you’re going to feel worried about the small moves that happen in the day.
Always remind yourself…
“My trading strategy will REWARD me for following it.
My trading strategy will PUNISH me for NOT following it.”
These three actions will eventually help you beat Captain Hindsight for good, as it did for me over 20 years ago.
Whether you’re just starting out or you’ve been trading for the last 10 years or so.
He is going to question you with two simple words.
And these two words, can really cause a negative impact on your trading portfolio.
In this short article, I’m going to warn you about how he’s going to uppercut your mind and most likely cause havoc with your trading.
This way, you’ll know what to watch out for.
A dangerous two word question to interfere with your trading
What if?”
Here are some…
“What if the market is in a bubble and I buy too high?”
“What if I’m wrong about this trade?”
“What if my trading strategy worked then, but won’t work now?”
“What if the market is in a period where I’m just going to take losses?”
Whenever the captain whispers these questions, you’re going to feel vulnerable and start second guessing your trading system, strategy and skills.
Succumb to the Captain and he’ll be back stronger and more powerful than the last time.
Here are THREE ways to beat Captain Hindsight before he returns
ACTION #1:
Extend your back-testing
So you have a trading system that you believe works… Prove it.
Go back and re-test different markets and jot down every time the system lined up.
Record every trade, including the costs and the statistics and prepare yourself for what is to come.
The more you back-test your system, the more markets and environments it would have weathered and endured. If it came out with all time highs on your portfolio, it’s a winner.
Captain Hindsight – won’t have anything on you – with a decent track record…
ACTION #2:
Drop your risk
The most common way for a trader to feel emotional, is when they have a lot to lose.
The larger your trading position, the more desire to win and the more fear you’ll have to lose.
This is why greed, fear and panic are the most ongoing reasons for traders to annihilate their portfolios.
Trading is a get rich slowly but surely game. And when you accept the gains and losses, you won’t care what the Captain has to say.
ACTION #3:
Step away from the screen
Not only will Captain Hindsight creep in before you take a trade. He’s bound to enter your mind while you’re in the trade.
“What if you’re wrong about this one?”
“What if you get out of your trade now while you’re in a profit?”
“What if you take a small loss, because it looks like this trade is a loser?”
The best action to take, when you’ve entered your trade with your trading levels (Entry, Stop loss and Take profit), is step away from your trading account.
Distract yourself by getting a drink, water your garden, take a drive or do other work.
The less you’re glued to the screen watching your trades, the less you’re going to feel worried about the small moves that happen in the day.
Always remind yourself…
“My trading strategy will REWARD me for following it.
My trading strategy will PUNISH me for NOT following it.”
These three actions will eventually help you beat Captain Hindsight for good, as it did for me over 20 years ago.
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