The art of trading is all about making calculated decisions that stack the probabilities in your favor…
These decisions must often be made in high-pressure situations where emotions are rampant.
Emotions often distort the entire decision-making process!
I know what you might be thinking…
“This is not a problem for me!”
I can assure you that you are fooling yourself.
Cognitive biases, like confirmation bias, are very difficult to escape because we believe our thoughts to be accurate representations of reality.
The solution to this is to have a well-defined plan that you stick to no matter what emotions are raging internally.
Of course, this is easier said than done…
I would recommend writing your trading plan out on a piece of paper to make it as concrete as possible.
Even with all of this planning, it is very likely that you will still give into your emotions in one way or another…
Failing in this way will teach your brain what the consequences are of making decisions based on the emotions of the moment.
It may take some time, but eventually, you will begin to understand on an emotional level that the trading plan should never be altered based on anything other than concrete data and facts.
That’s all for now!
Until Next Time,