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generate a profit, they can blame the loss on someone else, thereby avoiding responsibility for the trade. This is one of the reasons there is such a huge market for trading programs and advisory services. What happens when the trading program fails to make a profit, or the advisory service writer gets the market direction wrong? The trader blames the vendor for the lousy trade! What happens if the trader decides to ignore the ''advice of others," trades on his or her own thoughts, and then has a losing trade? Yep, the trader blames the market. What happens when the fill comes back, and it is different from expected? "Well, the pit took my money" is the most common response. |
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It is very easy to shift the blame to someone else; it is very difficult for most traders to accept responsibility for their own trades. It is even more difficult for traders to trust their own analysis and their decision to enter or exit the market. Why do you think the average trader finds it so hard to have the courage to trust his or her own actions? Because most traders base their decisions on an arbitrary trading methodology that they have no real faith in. The average trader still thinks that there is a holy grail that can somehow be bought. |
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When you have courage, you will be able to execute your trades with no fear or hesitation. When you have courage, you will be able to focus in the present moment, eliminating the fear of possible loss. You will also be able to trust your own analysis and actions. |
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How do you develop the increasing levels of courage to faithfully execute your trades? As you should know by now, courage is an emotional state that everyone values. Consequently our level of courage can be increased by changing or creating beliefs that affect courage and fortitude, using the techniques already mentioned. Since courage is something we value, it is controlled by the rules that we attach to it. In order to change or create empowering beliefs, we have to use empowering references. As we increase the amount of discipline we have while trading, we also increase the amount of courage available to us. By strengthening our virtues and starving our vices in order to develop an effective strategy that encompasses our own trading methodology, we will increase the amount of courage we experience. |
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Traders who have courage accept their fear as being false evidence that appears real. They accept that they could lose their assets. Implied in this acceptance is that they are well aware of when the risk they are exposing themselves to is acceptable or unacceptable. When traders act from a position of courage, they are behaving in accordance with their beliefs without fearmuch like a samurai warrior. |
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