Here’s the trick, part 1. To help emotionally, once I’ve entered a trade, I can mentally consider that the trade is lost. I don’t think of it as being part of our account. It’s gone. My true account is our total less the risk of any open trades.
This is what the crowd is doing and therefore will lose us money. Instead, flip it.
Here’s the trick, part 2. When I have spent most of my time waiting for a great entry consider the win from hitting my target as money in the bank. I mentally add it to our account.
The risk of the trade represents £100, for example. As I enter the trade I mentally add the £100 to our account. It belongs to us. I’ve spent the time finding the entry, therefore, the planned result (i.e. the winnings) belongs to us.
It’s now our money and we manage the trade accordingly – with a bit more fervour and positivity than I might otherwise.
Our goal of not losing money includes the planned result of this trade. I don’t exit the trade because of fear, because to do so means we lose money that we know is ours.
Unless I make this mental leap it is too easy to exit a trade thinking I can’t lose what we havent got. Wrong, it’s ours, we’ve earned it. Now pay up Mr Market.