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Ask any great traders what trade made them the happiest and why, and they will tell you several things came together. First, their methodology indicated a particular trade, and they acted upon it without any fear, hesitation, or anxiety. Second, they controlled their emotions and monitored the price movement while in the trade, and exited the trade exactly when their methodology indicated. Third, they were in the "zone." Finally, they made a killing on the trade. |
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Should a trade not be profitable, professional traders will say that it was unfortunate that it did not work out. The reason they aren't upset even though the trade lost money is that they entered into the trade, monitored everything while in the trade, and at the right time according to their own rules exited the trade. All with no emotional involvement. The fact that they lost some money is of little concern. Losing money on a trade is the cost of doing businessit is to be expected. |
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How does this compare with the response of a novice trader? Ask novices about a great trade, and they will tell you about the killing they made in soybeans the other day. Ask why they made a killing, and they will not be able to tell you exactly what had to happen to make them enter into the trade. Do you see how the focus of an experienced trader and a novice trader is totally different. |
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Novice traders focus on how much money they might make and how much they might lose. Experienced traders focus on all the steps required to fanatically obey their methodology. This difference in attitude is very real; yet many people explain it away by saying that successful traders are being modest or aloof, or deliberately vague so that they won't divulge their trading secrets. Professional traders are all too willing to confront the truth about their virtues and vices, so that they can confront the market with a tranquil mind. |
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What usually upsets great traders is the failure to obey their own rules. Just as novice traders get upset when they lose money, more experienced traders get upset when they fail to follow their own methodology and rules. Anger and resentment can be controlled by strengthening the trading virtues and creating empowering beliefs. |
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The amount of money you are able to create is merely a by-product of your trading skills. Likewise, the amount of money you manage to lose indicates how much your trading skills need to be improved. Trading skills involve mastery of your virtues, vices, and beliefs, and mastery of a unique way of perceiving the market. The bottom line is that in actuality the amount of money that you create is indicative of how much your perceptions are accurate and insightful and your beliefs are empowering. One of |
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