If you have been trading nifty future and making consistent profit, and still you feel like taking one more trade, remember its a case of performance curiosity. This can affect you negatively in your next trade. This Performance anxiety mostly happens when you think of every single detail of your trade, its common for beginner traders and its very common thing. You feel like you will loose a very good trading opportunity, but has disastrous impact on your performance.
As trader, we are always bound to have the pressure of making profits and in search of making profits, many times we neglect the importance of following our trading plan / trading system or using proper risk management skills and plans. I have prepared some points, which will help you to overcome performance curiosity while trading:
1. Forget those Profitable trade.
Forget your profitable trades quickly, but do write them in your trading journal. never think that I will 100% make profits, so I can leverage my trading positions. If you think so you will end up making huge losses. So trading plan must be in your mind and not the trade. A proper stop loss and you may end up loosing some money, but still you will be much better condition than you would have not place stop loss and ended up your trading career on just single trade.
2. Focus should be on Plan, not the Profits.
Your main focus must be on trading plan and not on profits you’re making. It will be much easier to meet your goals and track the performance. Once you end your trading day, you should question yourself that: Did I do my trades as per my trading plan? Did I adopt risk manage properly? If your answers are yes to both these questions, then you are on the right path of trading Nifty future.
3. When increasing your risk, take smaller steps.
If you have done some profitable trading, next thought on your mind would be to take bigger quantities in next trade. This mostly happens when traders gain high confidence in trading. This over leveraging will teach you unforgettable lessons and you may give up trading at all, so be careful.
So to avoid this, you can increase your risk at a suitable pace instead of just doubling or tripling it. Your must also keep in mind that the only thing your are changing is the amount you’re risking, still you are following your same trading plan rules.
4. Step away from the screen.
Once you close a profitable trade successfully, avoid trading that day. Get away from your computer screen and enjoy your day as you have got enough time and money. Intraday traders or day traders do most of the over-trading and this leads to emotional based trade, taking away much of your profits. So its always a better solution to move away from the screen once you’ve hit your maximum trading loss/profit. Protect yourself for next trading day, even next day you will see plenty of trading opportunities.
Share your view / trading experience on emotional based trading, comments below.