|
|
|
|
|
|
|
Success in trading takes more than just a few rules. It needs an attitude that fosters decision making based on logic, research, and methodnot emotions. |
|
|
|
|
|
|
|
|
Emotions almost never help a trade. They destroy your discipline, your ability to make clear-headed decisions, your ability to follow your plan, and your ability to do the right thing. |
|
|
|
|
|
|
|
|
Emotions almost always hurt your results. In an emotional state, traders get on an endless circle, like that shown in Figure 9.2. |
|
|
|
|
|
|
|
|
Your lack of knowledge intensifies your emotions because you are confused and unsure of your capabilities. |
|
|
|
|
|
|
|
|
Your emotions cause you to lose focus. |
|
|
|
|
|
|
|
|
Lost focus causes you to lose discipline. |
|
|
|
|
|
|
|
|
Lost discipline leads to poor trading decisions and poor results. |
|
|
|
|
|
|
|
|
Poor results increase emotion. |
|
|
|
|
|
|
|
|
Figure 9.2
Emotional Cycle |
|
|
|
|
|
