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that their trading behavior did not accurately represent who they were. For most, this realization took place at what they called a "black time" or "a pretty bleak time." The experience of losing everything actually liberated their thinking, and they realized how crucially important their internal values were. |
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In effect, all these future great traders realized (consciously or unconsciously) that they had to decide to strengthen their virtues and starve their vices. This is where mastering the nine virtues and beliefs of trading enters into the equation. By mastering all of them, you will be able to triumph over your fears and painful experiences. What are you afraid of while trading? Is it losing money? Is it that the market has the power to absolutely ruin you financially? Is the trading environment your friend or your enemy? Is it a threat that you must deal with? A very important question, when you are looking at the market and thinking of making a trade isWhat exactly are you focusing on? Are you focusing on what the market can take away from you? Are you thinking about how much money you might lose or how much money you might make? Are you loving the market or resenting it? |
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I ask these questions in an effort to get you to think about what your beliefs and perceptions are. It is your perceptions that are controlling your outcome in the trading environment. When the price begins to move, do you see it as an opportunity to profit or as a threat, a way to lose money? Do you think the market has only a few "good moves" a year, or do you think the market is in perpetual motion? Successful traders will perceive that the market is in perpetual motion, and that the price movement is an opportunity for them to profit. If you are focusing primarily on how much the market can take away from you, and then secondarily on how much money you might make by entering a particular trade, then you will typically accomplish what you are primarily focusing ona loss. |
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Almost all novice traders experience a very common fearthe fear of a loss (a financial loss or a belief loss). This overriding fear derives from the multitude of fears that they possess. The most common one is that they are not able to anticipate the market direction correctly. This assumes that someone else can. Did you ever stop to think that if anyone could accurately predict the market, it would cease to exist? Another fear among novice traders is that they will not act in their best interest. The more they |
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