Traders Also Need Self-control Here’s Why

Trader’s And Self-control

“If you conquer yourself, then you conquer the world”
― Paulo Coelho, Aleph

Self-control ..If you can master self-control, you can master anything. What exactly is self-control? simple, controlling yourself. Haha. that’s the lame version. The dictionary meaning would be: the ability to regulate and alter your responses in order to avoid undesirable behaviors, increase desirable ones, and achieve long-term goals. Research has shown that possessing self-control can be important for health and well-being. See it this way, That lingering thought in your head, the war between impulsivity and doing what’s right or beneficial.

For traders, It’s the ability to control emotions, impulses or behaviors to achieve consistency and profitability. Most traders will ask, Is self-control really that important, or is it better to enjoy the moment and not concern oneself with future outcomes? However, besides risking the ability to achieve long-term goals, there are other problematic issues with a lack of self-control.

Traders who lack self-control often give in to impulsive behavior and emotions as well..

The Need For Self-Control

That’s where you start taking revenge trades, you get consumed by the 4 fears (Fomo, atychiphobia, chroemtophobia and fear of leaving money on the table). All these, are usually as a result of lack of self-control. Blown accounts, Margin calls, Late entries are: usually a result of a trader who lacks self-control. In addition, I believe lack of self-control is one of the major reason traders fail.

This means that they may make poor choices that harm themselves and react poorly when they don’t get what they want.

Self-control is linked to many good things including success and the ability to achieve goals. However, it’s important to keep in mind that: one mistake in self-control shouldn’t mean that a person should give up. No one is capable of perfectly controlling their impulses or decision making at all times. A particular seminar I watched, the host talked about, “the boom and bust chart”. Traders who lose money end of forcing trades just so they can gain the losses incurred.

The idea to self-control is consistency. Imagine you create a plan. You followed this plan for two months but, one faithful day, you decide to break this plan.. You end up taking—two steps forward and four steps back.

Bringing you back to the staring line. This back and forth can cost you years. A task that will take a year, ends up taking 5 years due to lack of self-control.

Parts Of Controlling One’s Self

The question now is: how to start controlling your thoughts and emotions? There’re three parts to controlling yourself, you can decide to write them down, when achieved, you tick. The first is, Movement control. For movement control, it’s about controlling and being aware of the various parts of your body, controlling them. For traders, it could be your fingers, most people click the mouse and take trades. After-wards, realizing: “it’s a mistake..” but, you find out it’s already late.

Secondly, emotional control. This is about managing your feeling. As traders, this is the most important if not, the most. We’re human beings and managing our emotions an feelings won’t come easy at all. This is a challenge and a skill one needs to develop to: avoid certain drawdowns in their trading performance. The trick to managing your emotion is: to be aware of them.

Lastly, impulse control. Ever heard the phrase, “think before you talk”. That’s what impulse control is all about. Re-phrasing for traders: “think before you act”.

Traders who lack impulse control usually end up on the wrong side of the market. They only realize that after they’ve incurred grave losses.. The trick to impulse is: to be sure of what exactly it is you are looking for in the market. Most people that struggle with impulse control—don’t usually have a trading plan or an edge.

They end up taking wrong trades or doing the opposite of what the market is saying.

Final words,

In conclusion, As a trader, self-control is one of the most helpful skills you will need, want to know why? With self-control, you get to avoid most of the fears. You have to train your mind to be tougher than your emotions.

In trading, our greatest challenge is to control ourselves. If mastered, then every other thing falls in place. Today, I want you to be more aware of your thoughts and emotions whilst trading—start paying more attention. That way, you know what needs to be controlled.


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3 thoughts on “Traders Also Need Self-control Here’s Why”

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