Micro and Macro Trading Psychology

[nassarsyed 82]

This helped me...

It’s all about psychology.

There is a Micro Psychology angle and a Macro one

When in a trade we are focused on Micro.  Honor stops, take profits early and often. Don’t over trade, don’t revenge trade, walk away when we hit max loss etc.

Very difficult right?, but now think of the macro angle. Being green on a day regardless how small, having more winning days than losers. Accepting managed losing days as cost of business. 

Even if you make 6% a month you compound and double your money in a year.

With that in mind, think of the Macro angle again -  If at the end of the week,  You only made 1.5% so you are on target. How good would you feel?, on the other hand, if you screw up on micro level regularily, how does that make you feel?

When executing on micro keep macro in mind and you should be fine. Focus on that feeling at the end of the week. 

[dchababe 2]

Great Perspective! Nassar. it takes time and experience to right up the psychology part of trading. 

 

Sami BBT member