Mistake #2 – Getting emotional about gold

Check your heart at the door.

Stick to your trading plan. Having those barriers and limits will help you keep your emotions in check. The reason many emerging traders fail to consistently earn profits is because of their perceptions of money. Find methods to desensitize yourself to the emotional connection to money. Consider trading smaller size increments. Trading in smaller quantities can help minimize both the losses and the emotional distress that often comes with losing larger amounts of capital. As your experience grows, then you can consider upping the ante.

Fear and greed are common where money is involved. Once you have a position on and real funds at stake, these two will make an appearance. The market may move against you swiftly. If you had planned to risk only a certain amount, take the loss. Of course the market could move in your favor, so prepare what steps to take to protect your profit. Have a goal and realize it. Use the tools the market might provide to assist you in protecting your position to let your profit grow. Above all, don’t hem and haw as to what to do.
The market is unforgiving and takes no prisoners. Execute your plan – after all, that’s why you have one. Running “what if” scenarios in advance will assist and greatly improve your understanding in devising an appropriate response to whatever outcome you face. Following through is the key. Such techniques will help you in keeping your emotions in check by being mechanical. Never forget that your emotions will surprise you as the market moves in your favor, or against your position. Successful traders understand this and prepare in advance rather than wing it.