1. Don't get emotional. Adopt an objective view of wins and losses.
2. Build a trading plan. Put together some rules. A trading plan is similar to a business plan. Do's and don'ts are essential but most important are risk management.
3. Collect statistics for review. Record performance measurements in a diary. Put on the hat of an employer and ask yourself if you would fire or hire the person described in the diary.
4. Formalize your trading activity. If you find that you cannot resist breaking the rules, try to make the trading activity as formal as possible. Give it a business name and involve your spouse or best friend to manage your business so that you can't 'hide' your losses and destructive activity.
5. Don't over trade. Don't trade late into the night or for long hours. This is because fatigue can cloud judgment. As part of your trading plan, you can establish trading hours and keep to them as a routine. This will give you time to rest and maintain psychological well-being. It will also make your 'business plan' formal.
6. Walk away from bad deals. Trading is after all really a business so the trader has to look at reward to risk proposition.
7. Admit mistakes and terminate them. Conviction and determination may pay off in other professions but not trading. That's because the market is always right so staying in a bad trade doggedly is a bad idea.
8. Recite trading rules frequently. Remind yourself of the rules before the start of daily 'business' to recall do's and don'ts. This is useful for stubborn or people who refuse to quit.
9. Find a part-time job. It might make you feel more secure by meeting some daily needs. If nothing else, it keeps one from over-trading.
10. Set expectations right. Set realistic targets. Targets that are over-demanding compel the trader to over-trade or jump into bad deals.
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