What is “Micro-Managing”? “Micro-Managing” are two words that are used for explaining “over-thinking” or “over-protectiveness”.
When you are too much concerned about your trading and you don’t like to lose any of your precious investment, you will try to keep your losses as minimum as possible. You may not want to lose money at all.
Then you will try to keep track of everything. To be precise, you will want to maintain everything in a proper manner.
That is called “Micro-Managing”.
Today we will learn in depth about “Micro-Managing”.
Want free money?
We will learn why it is bad for good trading and our mental health.
In the following “Micro-Managing” is discussed thoroughly:
Causes of Micromanaging
Trading is like a business.
Here you have to keep track of the chart and trade according to the condition of the market. Nobody wants loses in their business. Forex trading is not of exception. Traders also don’t want to lose money in trading. New traders really fear to lose money as they may have a very little investment. If you do some research you will be surprised to know almost 95% of the traders are losing money. Why is the success rate so low in the Aussie trading industry? The answer is really simple. Lack of trading knowledge and discipline. The traders always try to make things complex as they think the complex trading system will help them to make more money.
Then they try to learn all trading strategies so that, they know where they will make money and where they won’t. The keep analyzing everything in the marketplace. Even, outside of the market, they try to look for signals and clues that point to the trading chart. This is called “Micro-Managing” when you try to know everything and control everything at the micro level.
Side effects of “Micro-Managing”
People may think that “Micro-Managing” is a good thing. It will help a trader to know the properties of the market at every instant. Then he or she will understand properly how to trade, how much to trade for. But, you will have to remember that we are human. We are not a machine. When you are Micro Managing, you will have to be alert all the time. You will not have proper time to eat or sleep. You will not get time to rest. This is not the way the professional traders deal with this industry.
Moreover, when you are Micro Managing, you are much more devoted to your trading than before. In this state, if you fail for a second and make an acceptable amount of loss, you will not have the mental strength to accept it. Frustration and lack of confidence will swallow you up.
Why you need to prevent yourself from “Micro-Managing”
You have to remember that you can’t win all trades. You cannot have all the information and predict the price movement of the financial asset with 100% accuracy. God has not given you that power. Always consider the losing trades as your business cost and trade with high-risk reward ratio. Focus on the higher time frame data to find the quality trades.
And don’t try to know about the all the fundamental factors of the financial instrument. You cannot stay updated all the time. You won’t know why the market is in its current state. There is only information about the past and the present trend is in the chart. Yes, you can predict what is going to be in the future. That is it. Nothing more than that.
Work according to your plan
If you have a strategy of starting with small amount trading, you are on the right path. Who knows you may become a master trader one day.
But, Jumping to the top won’t help in the first.
This kind of mentality fuels “Micro-Managing”.
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