The Five-Step Process For Resolving Any Trading Problem

5 Şub 2023

▶️ There are five steps you can take to fix problems with your trading. First, you need to understand what caused the problem. Second, you need to find a solution. Third, you need to put the solution into action. Fourth, you need to monitor and check the results. Fifth, you need to repeat the process if necessary.

1. Realizing
2. Understanding
3. Embrace
4. Action
5. Consistency

1️⃣ Realizing a trading issue before attempting to solve it is the first step. However, being aware can just mean being able to identify the initial issues with your trading, such as when you are aware that you are trading without using effective risk management. You have the groundwork to build on with this awareness of the issue, so you can proceed to the next phase.


2️⃣ Understanding why you have the problem is the next step after becoming aware of it. Examining it deeply to determine its underlying causes and the reasons behind your behavior. As previously stated, this can be the result of a deep-seated conviction that you don't want to make mistakes or be incorrect. How did you come up with this notion? Perhaps from family; perhaps they reprimanded you for making mistakes? Maybe it dates back to your time in school? Etc. All of this will depend on the trader personally and require some thought and reflection.


3️⃣ The next phase in the process is to embrace them when you have identified their roots and why they occur. In other words, you should acknowledge that these opinions, flaws, or whatever you choose to call them, are a part of you. You can't necessarily get rid of them, but with your improved knowledge and comprehension of them, you will be able to drain their energy. However, once you've accepted them and come to terms with them, you may start taking steps to control them. It results in the following move.


4️⃣ Once the previous steps are finished, you can go on and start putting concrete measures in place to stop them from sabotaging you. You must identify your triggers and when they occur in order to put corrective measures into place. You'll need to learn what triggers your sabotaging behavior and when they happen, and then create a plan to address them. This is where writing can be very helpful, as it will help you track your progress.


5️⃣ Consistency is the process's last phase overall. You must continually monitor your progress and assess if you are following through. You can maintain control by keeping a journal, creating goals, and reviewing frequently.


✔️ Describing the 5 Step Process:

1. Do I know the nature of the issue?

2. Do I understand the root of my problem?

3. Do I admit that I have this issue?

4. Develop a viable plan to stop them.

5. Analyse daily, weekly, and monthly to ensure that I am sticking to my strategy.