Top 3 Hacks For Better Trading

In today’s article, we are going to discuss the top hacks for better trading that will surely improve your psychology and eventually your trading as well.

   How do you feel if I tell you that you will become a professional trader? But you will ask how that is even possible! It is possible, and it is totally in your control. If you decide to change the way you think about the markets, you can definitely change the way you trade because your psychology plays a major role in your trading.

• Here are the Top Hacks for Better Trading-

1) How do Overtrading Traps Traders?

In many of my articles, I have talked about overtrading and how overtrading makes you a bad trader, but today, I am going to talk about how exactly you trap in overtrading.

One of the common reasons due to which traders fail to grow their equity curve is overtrading. They get absolutely trapped in overtrading. Watching trading instruments and seeing them fluctuating attracts many new traders, and that is how you keep on trading the whole day. These traders most of the time know they are trading too big, they are hurting their accounts, but they get used to entering and exiting the trade whenever they see an opportunity.

This is how traders fall into the overtrading loop, and this overtrading problem can cause major problems to your confidence. A simple and effective solution to this problem is to trade with position sizing that you are comfortable with and follow the basic rules of your system that eventually save you from the overtrading loop. If you clear this trap your chances of becoming a successful trader increase greatly.

2) Regaining that Confidence

Confidence is like fuel to your trading. If you are not confident about your trading system or your trades eventually you will lose in the long run. Having confidence in yourself and your system is very much important. Many traders, after 2 to 3 consecutive losses, gradually lose their confidence and their mindset becomes negative about trading.

In order to regain that confidence, you need to eliminate doubt and fear. After taking consecutive losses, traders get the fear of losing money, and here one important thing every trader needs to understand is without risk there are no returns. In order to regain that edge, you need to reprogram your brain so that you can develop the right trading habits that suit your trading style.

To make profits, you have to risk some money. If you are trying to regain that confidence, try to trade with small capital, get some profits, and then you can trade with the larger size.

For example, suppose you were trading with 2 lakh capital, and you lose 5 consecutive trades and you are struggling with your confidence, then instead of trading with 2 lakhs cut down your capital to 50k or 1 lakh. By doing this, you are not only cutting down your risk but also trying to gain that confidence in your trading system.

3) Trading System VS Personal Bias

This is probably the most complicated topic to speak on! Everyone has personal biases about the market. One trader may have a bullish bias at the same time, one trader may have a bearish bias and that is how transaction or trading takes place. Trading is a 0 sum game or actually a negative-sum game due to all the charges and brokerage.

Now, the question arises what is the more important trading system or your personal bias or instinct about the markets? Commonly, there are two types of Trading Systems. 1st is System Trading, where you pre-define your rules, you predefine everything, and you act accordingly irrespective of market movements or personal bias that is called system trading, and 2nd part is Discretionary Trading where your personal bias plays an important role.

In Discretionary Trading, you analyse other factors of the market and you take the decision according to it. So, both trading techniques are useful for you, if you follow the rule. In the end, how much you win when you win and how much you lose when you lose matters the most. Many new traders ask me whether I should do system trading or discretionary trading. In my opinion, if you are new to the market, you should define rules for yourself in order to avoid overtrading, and once you are an experienced trader then you can rely on your personal bias. Well, that being said, you should not put all your money at stake due to certain biases because risk management will always remain important. Always know how much amount you are going to pay if in case your view goes wrong and that is the right mindset of trading.

These are the Top 3 Mental Hacks that I think will help you a lot in your trading career. What do you think about these hacks? Post your views in the comment section.

If you want to know more about Risk Management & Intraday Trading Strategies you can refer to our previous blog on

Importance Of Risk Management In Trading and 10 Best Intraday Trading Strategies.

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