Thursday Trader's Tip: Fixing Trading Weaknesses by Leveraging Your Strengths
Thursday Trader's Tip editions offer quick trading psychology advice that can be digested in 5 minutes.
Have you tried several methods to fix a recurring trading struggle, but none have worked?
It might be time to rethink your approach.
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Written Version:
To break an ingrained problematic pattern, you need a lot of energy to counter the autopilot mode. So, it makes sense to implement an action plan that makes it easier for you to deliver this energy.
The best way to address trading weaknesses is by utilizing action plans that leverage your strengths.
Breaking an ingrained behavioral pattern involves three steps, in essence:
Recognition
Interruption
Replacement
Let’s say, for instance, you’re struggling with impulsivity in your trading—making early entries out of strategy. There are multiple action plans you can use; the key is to execute one that makes sense to you consistently.
If you find it difficult to articulate yourself on paper and don’t enjoy journaling, then trying to use writing as your replacement doesn’t make much sense—it simply doesn’t offer you the right stimuli.
If you are more of a visual person, using a screenshot of a trade-off strategy that resulted in a significant loss makes better sense. This serves as a quick reminder of the consequences when you feel the impulse to overtrade.
If introducing logic into your thought process resonates better, use a specific sentence that helps you inject logic to avoid acting impulsively.
To overcome psychological barriers in trading, you still need to understand yourself, your strengths, and what methods work for you.
Implementing any method and waiting for it to work is not enough. Sometimes, it takes much trial and error.
There's no way to avoid the self-discovery process, even when discussing fixing mistakes. So my challenge to you comes in two questions:
What is your current trading mistake that’s been costing you more?
What is one action plan you can implement that calls on your strengths?
Implementing methods that use your strengths will give you the extra energy, motivation, and confidence you need to break the problematic pattern and initiate a new response.
Many of your failed attempts to solve your trading problems can be bridged with the right self-awareness, introspection, and curiosity about yourself. Don’t sidestep this process; embrace it!
Peaceful trading,
Sara
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