Are You an Impulsive Trader? Try These Hacks

in this video traders we’re going to look at three hacks to try if you are an impulsive trader if you’re the type of trader that starts up the screens fires up the laptop files up the computer picks up their phone and goes you know what i quite like that trade click stay tuned hey traders warm welcome to you all right so you know i know everyone knows impulsive training never serves you um and guys i’ve been there done it i’ve been there done i would trade impulsively i would just see something i’d hit the button and i’d instantly regret it and you know and i know everybody knows it’s not in your long-term success goal to be an impulsive trader do you think any professional trader any hedge fund manager any money manager anyone involved in speculation whatsoever

just pulls the trader on up pulls the trader pulls the trigger

on a whim no of course not you know they wait they wait they wait they’ve got a process you know got to process the unity strategy anyway i’m not going to go through the whole reason why you shouldn’t be an impulsive trader

we’ve probably all been there and done that but also i’m going to say hey you know sometimes we get people who say oh you know just just don’t be impulsive just don’t be just don’t be you know but listen cause we’re human beings we form habits you know speak to a smoker and say we just stop smoking well let’s say it’s easier said than done if someone is overeating easier said than done any kind of thing that we know is a bad habit procrastination sleeping in not doing fitness all these kind of things it’s easier said than done just to say stop it or do this

so what these three things are are like you’re still gonna have to use some willpower

you’re still going to use something but it’s a one

miniature step before the big step of stopping impulsive trading

so you know we know guys that we don’t really impulsive trading

we just want to try to fix it let’s be solution focused to this rather than problem focused

and you may have to hear me on my channel loads of times talking about you know various different reasons why we don’t want to be impulsive other guys on other channels of obviously would have thought covered things like this because it’s important but the first thing to think about

is how do we break the cycle of the impulse not how do we stop it straight away let’s take baby steps so one of the things we can do to kind of break that cycle in the mind and use what i call the timer rule so when you feel like you’re about to pull the trigger instead of putting the trigger set a timer on

google google’s got a timer your phone your watch whatever

set it for a minute maybe for day trading if you’re swinging trading through five minutes

and that just makes you stop and what you do is you say to yourself hey i can make this trade afterwards no problem you can pull the trigger do whatever you want but just wait a minute one minute back and then you wait

and what that does is it makes you just spend a minute

it’s all it needs most of the time to reevaluate the trade and very often you’ll say you know what

this is an absolute naf trade i’m not gonna take this

makes zero sense discard it you might go you know what it takes all the boxes i’m still gonna pull the trigger we’re not probably going to get a bad fill after a minute you’re not going to affect the fill on your trade or affect it okay it might be now and then if you’re really actively day trading but it might work in your favor it might not assume that that cancels each other out but what it is going to do is going to stop you taking impulsive traits try that timer rule second thing guys is set up a checklist system so have a habit or try to reinforce a habit that says you know what every single trade i’m going to run through a checklist now it doesn’t have to be an erroneous 25 page essay where you’re going to check this i’m going to check this i’m going to check this i’m going to check this before every single trade pointless you’re going to miss every trade there’s no way you’re going to stick to that but simple simple one again it takes about a minute as well want that time maybe

10 or 20 pieces or very quick pieces 10 pieces say

it’s like okay where’s the stop loss positioned on this

uh what position side should i be doing uh what are the checklists that you look for what’s the sect or what’s the current market conditions um what’s my overall risk on this but and just again

the pattern interrupts might stop you from just clicking the trade getting into the deal and going you know what i didn’t really want this but a minute now it’s harder to get out than it is to get in we know this it’s harder to kind of do something about it and take a loss if it’s smaller

you know the idea guys you’ve probably been in this situation many times before so try that

setting up a checklist type uh system i’m gonna underline this one as well the third thing is don’t use market orders so a little hack if you should find you struggle with these because these are still some things you’ve got to actually do what about

taking off market orders what does that mean so basically it says okay again we’re a little pattern interrupt here we often if we’re trading impulsively using market orders we see the market moving back we want to get in short long in in one instant gratification that’s why we’re doing it if you eliminate market orders and you just use limits that have got to be a minimum of x pips away from the market x sensex whatever away from the market

what it does is it basically while that’s sitting there to be

filled again we’ve got this one minute that hopefully you’re going to look at it assess it and

judge the trade a little bit clearer rather than the impulsive

trigger pulling that you’re doing at the moment so again any of these little things just take

time just stop make you pause and the limit order helps because okay going to get might get filled from time to time straight away you know and that’s the way it is but it might be times where it sits there it’s almost getting filled you’re like you know what i don’t really want it here i want it lower i don’t want the trade i want to wait to see x y and z oh we’re late in the afternoon oh we’re on wednesday oh when the stock is already at 15.

you get the idea you might then go through your process internally and decide not to take the trade or you might just go through the process internally and go yeah great trade leave in fine but don’t forget what we’re trying to do here solution focused is we’re trying to prevent those impulsive trades so three good hacks guys that work really really well to kind of limit those

impulse trades because we know they don’t serve as long term

and yes you might say well yeah i’ve profitable from time to time but if you ask yourself

you know the question good a question a way to ask yourself is hey let’s say you’ve built a track record up and let’s say now you’re going out looking for external money and you went and you said to them hey here’s my track record i said what’s your strategy when uh

i just come to the screens and i’ll just go long or short whether i like the look of it

it’s pretty unlikely you’re going to get that 10 million quid that you’re after isn’t it

pretty unlikely um now it’s not to say you can’t have some intuition in your trade i’m definitely a big fan of having some intuition in a kind of within boundaries but impulsive trading is

i think that’s going up i would like to make some money i’m going to pull the trigger on it bang

and we know that that is damaging to our account long term so try to three things guys if you’ve got any you want to add please do in the comment section below appreciate all your support comments questions likes shares subscribes all the other stuff you do on youtube and you know that you can

use the notification if you want i don’t want to be the person who pattern interrupts you

when you’re trading so don’t use notifications or at least have uh do not disturb one on your phone or whatever you’re using during your training the last thing you want is me popping up and going oh i’ve got a new youtube video

don’t be interested in that video but if you do they’re there and of course guys you can see got lots of videos coming up covering different types of topics some of them will suit you some of them won’t just pick and choose the ones that you like to watch and hopefully they add some value to your training don’t forget to check out our channel sponsor

and if you’re in the mastermind i’ll see you there take care bye

you

Leave a Reply

Your email address will not be published. Required fields are marked *