|
|
|
|
|
|
|
mental templates (or archetypes) with which we are born. Let's begin by giving a simple definition of a perfectionistic investor. |
|
|
|
|
|
|
|
|
A perfectionistic investor is someone who thinks that anything short of perfection in his or her trading is unacceptable. |
|
|
|
|
|
|
|
|
Of course, it is not so much that we say to ourselves, "I want to be the perfect investor." It is more that our thinking and behavior reveal this as an underlying desire. In addition, in our performance as investors, we blur the important distinction between perfection seeking and striving for excellence. |
|
|
|
|
|
|
|
|
The desire to be perfect may lead to paralyzing fear in the form of trader's block. Or it may led to foolhardy risks in the attempt to prove to ourselves and others how skilled we are. In this chapter, we will define the perils of perfectionism as they relate to online trading and we will make it crystal clear to you how perfection seeking differs from pursuing trading excellence. I want the difference between perfection and excellence to be etched into your mind so that it can never be forgotten. |
|
|
|
|
|
|
|
|
The personality styles and trading types we explored in Chapter 2 are all infused by the desire to be perfect investors. For example, the obsessive-disciplined, of all the types, is most likely to suffer from perfectionism, with fears of loss that hamper reasonable risk taking and the willingness to make mistakes. While they exhibit many of the positive, disciplined behaviors required for good trading, they also are susceptible to ritualistic habits and compulsive behaviors that lessen their effectiveness. |
|
|
|
|
|
|
|
|
The timid-doubter is unsure, always wanting more data, never comfortable making trading decisions based on incomplete information, even when it may never be available. They are timid because they can't take decisive action. And they are doubters because they can't stand the thought of making a mistake. Perfect investors, they think, don't make mistakes. |
|
|
|
|
|
|
|
|
The gambler-impulsive jumps in head first and always at the deep end of the trading pool. They are trying to prove to themselves and to others how good they are and to satisfy their narcissism to be the best by making the biggest splash and the most money. At least they're not afraid to get their feet wet. |
|
|
|
|
|
|
|
|
The optimist-gullible type wants to believe that positive, wishful thinking will translate into being a great investor. When they realize they aren't going to be perfect, they try and find a money manager, a full-service broker, newsletter guru, or someone else they |
|
|
|
|
|