Indiana Grain Company, LLC

Posted: 02/06/10

By: tomgrisafi

Our good friend Gordon Linn from the Linn Group, said a quote over the Futures Line Friday that seemed as if he was trading from the floor at Indiana Grain personally.

"Now is the time when you must keep your head when others are losing theirs".

The worst thing a trader can do is panic when at a loss, you must always find a way to keep your composure and know your exit strategy.

Easier said than done, I know.

The psychological aspect of trading may just be the most important piece to the puzzle. We are often darting in and out of trades so quickly that we are forced to become very quick decision makers.

Making a decision is one thing, but making the decision that is in line with your trading plan is another. This takes discipline and the right presence of mind.

Lets face it, our emotions can get in the way.

When the wall-boards are all flashing red and it seems like the world may be ending, its easy to get scared and want to liquidate, crawl into a hole, and not come out.

But this fear can destroy a trader, and do so quickly. Fear can stop a trader in his tracks from entering a trade, and can also be the reason one exits a trade much to early due to the fear of losing a gain.

We are human, and perfection in trading does not exist. However, their is money to be made when we learn how to manage our emotions.

So how do we develop trading discipline? Well, it is not found in a book, course, or even a mentor. Trading discipline is developed within, and remember only trading discipline will protect you from dangerous trading.