When you trade, the first thing you probably do is pull up a few charts to scan over the market and monitor exactly what's going on today. But what if I told you that there's something more important to monitor than the market? Something you probably don't think about often enough..and that's monitoring yourself.
What Monitor Yourself?
In my experiences of working with thousands of traders over the last several years, most of them eventually have no problem with reading the market, charts, and finding decent trades. If you're still struggling with that aspect of trading you might want to take a look at our Price Action Trading Course which is an excellent learning resource.
But once you know how to read the market, your biggest thing you should be monitoring is actually yourself. The majority of traders I have worked with learn very quickly how to read and monitor the market, but many of them struggle with monitoring their thoughts and emotions. Trading isn't all about technical analysis, the majority of trading is all within your mind. How will you react to a position that goes against you? How will you react to a losing streak? How will you react to not following your plan?
Often times when I see in traders is a snowball effect -- they start out with one small problem with their thought process or mental state and it compounds until they reach a point where they can't do anything right and can't place a winning trade if their life depended on it. Problems with your thought process and discipline are so easy to overcome if you work on them immediately, but when you allow them to sit and fester they just continue to add on to each other until you reach some sort of breaking point. Unfortunately so many traders don't ask for help until they reach that breaking point, and in some cases it's too late as they've already blown their trading account or completely shattered their trading mindset.
If you find that you have trouble with monitoring your thinking, reach out for some help and pointers before it goes too far. Some of the most common thought problems in trading are:
Placing trades when you know you shouldn't be
Passing up on trades that you know you should be taking
Not following your profit target or stop loss
Not having proper general discipline about your trading
Approaching your trading assuming you're going to lose money today
Going about your trading from a loss management standpoint instead of trying to turn a profit everyday
These are some of the most common problems people face in trading when it comes to not properly monitoring their thinking, and they let their mind wander so far that they are convinced they'll never find a solution to these issues. Sometimes reaching out for a little help and thinking outside the box can make a huge impact in not only how you think, but also in your trading results.