How many times have you scared yourself out of a great trade?
You enter a trade, and a little negative voice in your head starts nagging.
“Is this really a good trade?”
“What if I made a mistake?”
“Oh no, it is heading in the wrong direction!”
Before you know it you bail out of the trade, only to find it would have been profitable had you stuck to your original plan.
In this article, I am going to show you how I overcame my own negative voice.
If you find this article useful please leave a comment and let me know. I would love to hear how this article has helped you.
Drown Out The Negative Voice
The negative voice in your head usually starts off small and is sometimes you aren’t even aware of it. However, the longer the voice goes unchecked the more powerful it becomes. Eventually the voice becomes a rumbling mass of negativity, and you cannot help but exit your trade.
So what is the solution?
Drown out the negative voice.
How do you do that?
Well, it is incredibly easy, once you know how!
You need to introduce a positive voice into the mix.
Positivity is like kryptonite to negativity. I have been doing this for years and it has become second nature to me. Whenever I am in a trade, I chant positive statements to myself that drown out any negativity.
Here is a list of what I say to myself. I use these like mantra’s.
1. “This is a good trade and I entered for the right reasons.”
Reminding yourself your are in the trade for the right reasons makes it harder for you to doubt yourself. Without self-belief you’ll be beaten before you even begin. Repeat this statement to keep doubt out of your mind.
2. “I am following my trading and money management plan.”
Following your trading plan is vital to your success as a trader. You developed your plan for a reason when you weren’t under pressure and were in a logical frame of mind. It’s easy to become emotional while in a trade so you need to refer to your plan to stay on track. Knowing that the trade your are in is part of your overall plan helps to keep you positive. Repeat this statement to remind yourself that you are following your plan.
3. “It is normal for price to make small retraces as it heads in the right direction.”
Trades rarely go in the right direction consistently as soon as you enter. It is normal for price to move up and down for a while, before your trade hits target. This statement reminds you that retraces are a normal part of trading.
Write These Statements Into Your Plan
You should add these statements to your trading plan. This will make it easier for you to remember and follow them. Also, don’t be afraid to come up with your own statements too.Everyone has their own individual negative talk that they have to overcome.
Next time you are in a trade, try using this technique of positive self talk as I guarantee you it will help.
Leave a comment below and let me know if this article has helped you.
John Carter
This article sounds too simple to be true BUT it really is this SIMPLE. Don’t make it any more complicated than it needs to be!
Having said that, make sure that positive voice does not override your trading plan. It’s also easy to get too positive if you are in the “zone” but news will still happen and S&R still come into play.
So have confidence in your executions but stick close to your trading plan including stop losses if the trade goes against you… being positive about an oncoming freight train is not the right time!
Néstor
Great article, my little voice negative attacks me on the first kick, sometimes hear them not focusing on the reasons why I opened the trade, but still has a great influence on my emotions and makes me reap a few losses. I’ll always have your advice on how to eliminate it, Thanks.
Prince
Great message,When I was losing traders i figured out that i waited till end of the opposit trade in a hope that market will come back and many times it did not.I say to my self if it did not come back and hit my SL then if i stay in trade it may hit my TP too.So I stay in trade till it hits either of these.Many times it hits TP.Now you have added more points in my positive talk.If I can benefit from one point, deffinitly i will benfit from more points you suggested. Thank you.
Smith
Good. I do think like that some time
Pedro
Good advice!
Michael_K
Nick, I always like to hear what you have to say and this article is a good reminder that “a good trade” is not the one that has to win but the one that was entered into for the right reasons. For that reason I would change one word in the first mantra. I would change the word “and” to “because” so the Mantra read: “This is a good trade because I entered for the right reasons.”
Gerar
Yes helped me.!!….I use always number 2, I am new trading real money “seriuosly” and this statement realy make me stay more calm whit each trade. Y started trading real $ this year (January) after trading 8 months om demo account, and the diference is realy high. I am not being profitable yet, but improving and leraning to manage myself whit the market.
It seems to be rare, but is very good to talk to yoursef whit this positivness.
Good article!
Ladye
Great advice. I have followed this for a few years and it works!
lance
You are so right. Especially when you are starting out you need to get over your fears if you want to make money.
ng
good advice Nick,yes positive thoughts are good to overcome fear.Thanks
NickB
Glad you like the post!