Our mind plays games because we dont want to loose . That is where discretion comes in.The following might help in reducing the mind influence.
1) Backtest the method and convince our inner mind that the method is profitable .
2) Have adequate capitalisation. Shoe string capitalisation is one reason for second guessing trades.
3) Make sure that we dont depend on the earning from trading to pay our monthly expenses....if we have to earn for expences, we will never be able to accept normal losses which are given in this business.
4) Keep some amount aside ( like 30-40 K ) for continuous losses and drawdowns. You may never need it but it will give a solid comfort level .
5) Be prepared to loose some accumalated profits . Systems traders dont buy/sell on the lowest/highest tick.
Smart_trade
1) Backtest the method and convince our inner mind that the method is profitable .
2) Have adequate capitalisation. Shoe string capitalisation is one reason for second guessing trades.
3) Make sure that we dont depend on the earning from trading to pay our monthly expenses....if we have to earn for expences, we will never be able to accept normal losses which are given in this business.
4) Keep some amount aside ( like 30-40 K ) for continuous losses and drawdowns. You may never need it but it will give a solid comfort level .
5) Be prepared to loose some accumalated profits . Systems traders dont buy/sell on the lowest/highest tick.
Smart_trade