Home » Setups or Trading Habits? What can make you a Winner?

Setups or Trading Habits? What can make you a Winner?

Traders are on the constant lookout for setups. No matter at what stage the market is, as a trader, you must scan for setups. You do it as if it is demanded of you as a trader. But have you ever wondered whether this constant pestering had bought you any success?

Cultivate the habits

When you spend more time with the market, you’re bound to rub off its behavior pattern. So you are going to find winning setups more often. Like you, most traders do it as well. However, in reality, we do have more losers than winners in the trading community. Why? The main culprit is emotion.

Trading is more psychological than intellectual. Even a 5-year old could beat you in this game if he/she had the right habits. So, why not develop those habits that can make you a winner rather than searching for setups. Here is a list of practices that can take you to great heights.

#1 – Don’t Over Analyze

After you enter a trade on the back of a thorough analysis, be patient. Wait for it to hit the TP or trigger an SL. This habit can save you a lot of frustration of closing out a good position too early. On the contrary, a gruesome experience owing to this habit surfaces, you got to work on your analytical skills.

#2 – Listen to your Guts

Don’t blindly stick to the book. Take a contrarian trade, with suitable risk measures, that your gut tells you once in a while. It is the contrarian trade that delivers the most stunning results and hence makes a habit of doing it often.

#3 – Whatever you do, plan it

Whether you go with the trend or against the trend, do it with a plan. Because the planning prepares you for the worst, and you might dodge a howler. Or it prepares you for the jittering moving in a well-thought analysis and lets you be composed. So, plans can do make you a winner.

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