The death of certain illusions is often accompanied by a significant shift in how you approach trading. So here’s something that will hopefully help kill one of the most pervasive illusions out there.
We’ve all done it before… we have a plan, we come in the market well prepared, but then, we end up behaving in ways that are irrational and destructive. It hurts! So, naturally, we resolve to behave differently in the future.
While a statistically tested strategy and an efficient money management technique are essential, the right mindset is what glues everything together.
A few years ago, I read a fascinating article about U.S soldiers who had been on multiple deployments to Iraq. What was special about those soldiers is that they got to a point where they could predict with amazing accuracy whether or not there was a bomb on the streets waiting to explode.
As we all know, emotions are complex experiences. An emotion involves thoughts, sensations, physical afflicts, colorations of the mind, and, how well we recognize them as they arise in the present (and diffuse them) depends on our level of awareness.
“When should I quit trading for good?” If you’re a struggling trader, I’m sure this question has been in the periphery of your mind at some point.