When it comes to mastering your psychology, feeling safe and protected can do wonders. If you are truly afraid of making a mistake, then you will not feel calm and relaxed. You’ll be on the verge of making a trading error. In addition, when you are under extreme to perform flawlessly, you feel it. There’s an old trading adage that is apt to trading in the calm, calculating state of mind. Make the trade so insignificant in the big scheme of things that you wonder why you are even bothering executing it.
Managing your risk is the key to calculating an unwavering, psychological sense of safety and security. If a trader requires you to risk only a relatively small percentage of your account balance, you’ll feel at ease. You’ll know that you can survive a setback and you’ll think, ‘What do I really have to lose?’ I can relax a little and see what happens.