This is the continuation of the series “How to be a better trader?”. Click here to start from Part 1
There is only one thing we need to tell you here
Do not look at your live floating P&L
Looking at your live P & L is a source of stress. It can distract you from your job. It can cause addiction to trading. Yes, gambling addiction that can destroy your life.
Looking at live P&L causes negative and positive emotions. Emotions lead to bad decisions. If you keep looking at the trade, there is every chance that you will make some mistake. Like doubling down, or shifting your stop loss. So once you are in a trade, set a stop loss, set a target to exit, and do not look at the P&L. Look at the market for other opportunities, look at the charts of your trade to seek new information. But do not look at the P&L of your live trade.
More reasons to not look at the P&L?
Human brains function the best when we get enough breaks. Constantly looking at the screen is does not give you breaks.
Also, if you are always looking at your P & L, how will you spot the next big opportunity?
This is so important to us that at many instances, we thought of not putting real-time floating P&L in the positions page of Sensibull
Tailpiece: Interestingly, these points are connected. The one about trading with money you can afford to lose and the one about not looking at the screen. One of the reasons why a trader always looks at his screen is that the money means something to him. If it does not, how does he care? And if he does not, why would he look at the screen? Which also means, not caring (much) is the trick to making unemotional decisions. Ironically, it means that not caring much about trading P&L is a crucial trick in trading.
We do not mean to say you should not care about your P&L. Yes, put every bit of hard work into learning about trading, analysing your trades, designing strategies, and planning your P&L targets. Just don’t look at the live P&L or care so much about outcomes. Passion for trading is not how much you look at the markets or P&L.
As a parting thought, as Lord Krishna said, “Do the Karma, do not care about the results.”
[…] Continue to Part 7, the last part […]
Thanks for the wonderful article
Thanks for the wonderful article, your words widened my thought process.
I am new one in trading. I have traded only two days recently. Everything written in the article is very important in trading and aslo in real life. Thank you so much.
It’s such a Beautiful Article…Quite realistic…All the points covered ( Strategies and Emotions) for a new trader … Please keep sharing such thoughts… it’s motivational…
Thank you so much
Very useful artical. 🙏
very beautiful artical
results of experence
Superb article, very informative and educational.
It is very Honest Explaination with Realty Touch ,I really Understand Why Was i making big losses and how to avoid them, All the each and Every Word mention in this blog it is really authentic info. i really thank to you for provide this Most Imp Info. Free of Cost , thank you Sir.
I completely read all the parts of this Article and sure this is going to make me discipline
This article is very useful and full of information… I learn a lot from this article and found where I made mistakes! Thanks a lot for wonderful knowledge.
Please keep posting such a good informative articles.
Yes, psychology and controlling emotions are most important for a trader to be successful.
Good enough for a begin a trade professional
Good to know about the meaning of trade.The most important lesson I learnt part of trsde
Very good
NICE ADVICE TO MAKE ONE A GOOD TRADER
Nice Article Mr. Abid,
Please write some advance level articles on options trading , ( its my request )
One must follow all 7 Rules…Naiya Parr karanne ke liye kaffi hai….
One of most important points discussed here.. Tysm for this points.. I liked it..
SHORT AND SWEET, BUT REALLY HELPFUL TO GET READY TO DO TRADE WITHOUT EMOTIONS
Very useful for beginners
The whole article is like a valuable book.Thanks a ton.
just Wowwwww. I am planning to take print out all of these pages bro. superb article. love it so muchhhhhh
Very good article
I will try to implement
Thanks
Superb article for beginners.Keep posting good articles like this regarding options trading. Waiting for next one😊
I am grateful to sensibull for providing the articles on option trading and how to become successful trader. Yes, Money management is the most important part of trading. Articles have clearly illustrated the principle of stop loss.
Yes …..This is the very important article
thank you for the article .
It was only after reading this article that I got the understanding of trading mainly the misunderstanding of what we should trade on trading days.
Thanks sensibull . Thanks kamath ji
Very useful article. Thanks a lot.
Very useful and thoughtful points to be kept in mind by a trader. Thanks for providing help and guidance on the subject.
if everone follow the seven article,can become good,best treder.extremly usful for all kinds of trader.tnx so much sir
Great articles……Learnt every single lesson the hard way and by loosing money. Trying to bring discipline into trading which is a constant fight every day. It is not going to be easy so read all these observation everyday to remind yourself !!