Today i started the session with my old habit of mistakes and was very disappointed about myself; however, nowadays what changes is not my internal personality, rather, it is how i learned to catch my old-self and amend him immediately. That’s really the power of habit, is not you have changed yourself into a different person, rather, you have created a strong habit to amend and help you to make the better decisions while all your internal self is still inside.
I’ve lost 40 lobs by changing my habits in the past 3 years, however, nothing has changed internally for me, every time i see delicious and unhealthy food, my urge to eat, to binge, is still there and will always be there. I simply create a new habit for me to follow, and a new “desire” with future projection, such as Tony Robbins’ “pain” and “pleasure” mechanism.
I simply replace the “pleasure’ of eating delicious but unhealthy food to “pain” of eating unhealthy food and feeling unhealthy in life; then switch the “pleasure” of eating delicious good to “pleasure” of not eating unhealthy food and have amazing health with energy to enjoy life’s other pleasant things.
Again, if it sounds complicated, i recommend reading Tony Robbins book.
So exactly what happened today? well i got in on my trading routine, everything went fine until I saw AUD/JPY chart that was in the same direction as my fundamental analysis. “oh man it’s really going up now"
then, instead of sitting down to write my plan, i jumped in the trade because the fear of missing.
It went up, and went down, and went up, and down, and my heart was pumping, i started at the monitor…then suddenly i realized what the heck am i doing?
I had no plans at all!!!
I realized what a huge mistake i’m making and immediately gotten out at BE. Thankfully!
Then, i slowly wrote my plan, which is actually exactly the same, still LONG AUD/JPY but the difference is the mentality.
Now I have a plan, an entry, an exit, scenarios to manage the trade, what to do when what happens…etc
So if looking from outside at my action, there is no difference. Enho is long on AUD/JPY and got out. Enho is long on AUD/JPY again at exact same spot...
However, the internal is what really makes a difference between winning trader and losing trader.
Because let me tell you, when things are going well, we never thought how important it is to learn our trading psychology.
But only when you’re losing, you’ll realized how important the trading psychology and having a trading plan is.
The 2 scenarios might be the same, Enho entered Long on AUD/JPY and if AUD/JPY goes up all day, Enho is feeling great!
However, what happened when AUD/JPY goes down?
The first Enho would immediately feel panic, he had no plans, no ideas, no scenarios on what to do, he’ll most likely check the news, start second guessing himself, then he’ll go on forum and start asking others’ opinions. He is vulnerable and clueless.
Then, he’ll make a decision because someone on the forum would say “AUSSIE? Man RBA is going to cut rate FOR SURE"
This person on the forum might be right, and he is simply stating his long-term view for AUD.
However, that was never the reason ENHO entered, but at this vulnerable point, Enho would just exit the trade with a loss, and a bitter feeling.
Then, suddenly, AUD/JPY goes up again and now is soaring, Enho immediately felt huge regret, he again checked the news, checked his dog, checked everything but his plan because he had none. He wants to jump in again and he did.
Then he secretly blamed the guy on the forum, “what a stupid idiot!”
I hope the above scenario does not sound familiar to you, but that Enho was exactly who i was back then.
And that’s why i’m very happy today, no action, no loss but most importantly, i’m happy that my new habit, my new learning, my progress has allowed me to transform myself into a winning trader.
Currently i’m still holding USD/JPY and GBP/USD, if you want to get instant updates, follow my twitter and check out my orders/updates page, there will be the newest updates for my trade.
Other than that, have a great weekend and hope you have learned something from my mistakes.