On the surface, it seems like a strange idea: We become winners when we learn how to lose. It’s when we can’t accept losing that we hold onto trades long after they’ve gone against us. It’s when we can’t accept losing that we play small ball and never pursue meaningful
Sound trading lies at the intersection of rigorous thought and decisive action. Without rigorous thought, we trade randomness and fall prey to impulse. Without decisive action, we betray our best ideas.Overtrading occurs when we take risk without a clear edge in our trade. On the surface, this seems like madness.
Most traders have dealt with runs of winning and losing trades. We can expect those to occur simply as a function of chance. A greater problem occurs when we have runs of sound and unsound trading processes. In other words, we become inconsistent in our preparation for trading; inconsistent in
a powerful obstacle to developing successful trading strategies is perfectionism. Perfectionism clearly plays a role in preventing us from cultivating superior strategies. In a very important sense, perfectionist traders are not seeking to make money. They are trying to not lose money. Their intolerance of loss keeps them moving from method
there are two views on emotions. One, the most common, asserts that emotions are givens: biologically wired. A second view is that we can cultivate what we feel and how we express it. That second view suggests that creativity is possible in our emotional responding as well as in our
In a broad sense, there are two forms of knowing:* Predicting – Being able to anticipate future events.* Understanding – Being able to explain events.We can predict without understanding. We know to anticipate changes in weather without being able to explain the chain of events by which these occur.We can understand without