Don't be a sucker
Hi,
I was recently coaching a new trader, let’s call him Joe, who had come to me after sustaining a number of large losses.
He was fairly new to trading but had taken a modest account and grown it to a respectable sized account in a short amount of time.
Unfortunately as the story usually goes - easy come easy go.
As Joe and I started working together it was pretty clear that Joe had lost his way and more importantly he had lost his trading mojo.
“Before I lost all that money I had no fear in my trading - now it’s like I’m scared - it’s like i’m scared to pull the trigger.
What do I need to do to so that I can trade the same way I did when i first started out.“
So why do I share this story?
When I talk to traders there’s a great deal of misunderstanding around the emotional state of fear.
Here’s the thing - the way forward is rarely if ever backwards.
Most beginning traders start their trading careers with no fear.
In some paradoxical way, the state of mind of the beginner may be very close to that of a great professional trader.
Of course there is a huge difference in that beginners have no fear because they are unaware of the potential disastrous consequences of their actions.
The professionals’ lack of fear is based on their experience and self-control.
New traders have their hard hits ahead of them, while professionals have left them behind.
Professionals take the trade when they are comfortable with the risk and when it fits their trade plan, while beginners do it when they like the profit potential.
Regardless of motives, the state of the mind of beginners and professionals may be fairly similar.
This results in the correct action despite the beginners’ lack of experience and knowledge.
However herein lies the lesson - success without the knowledge of why or how it is achieved only delays learning some hard lessons and realities, and sometimes it takes hitting rock bottom before the beginner appreciates the true path towards trading success.
So here’s an exercise to shift your thinking from beginner to professional.
Define SUCKER
Here are some characteristics of a sucker:
Suckers think they can figure it all out themselves and outsmart the market.
Suckers are always looking for hot tips.
Suckers think there are secret systems and indicators.
Suckers think they can avoid losses.
Suckers overtrade
Suckers don’t apply stops because they know they are going to be right.
Now it’s your turn:
Write down all the traits of a sucker.
Do you spot any of these traits in yourself?
Turn it around, where and what do you need to develop to shift from being a sucker?
Review your sucker traits on a regular basis.
Try out this exercise...
Uw Optiecoach :
contribute - be aware - have pleasure - say “yes”
