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Zero Sum game

  
  Education
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zerosumgameWhen people trade the common misconception is that they are trading the market or taking money out of the market. They are not. They are trading OTHER TRADERS and taking money from OTHER TRADERS. In order for one trader to make money another trader or group of traders needs to lose money. This is how the market works and that is why it is a zero sum game. If you are losing money in the market the market is not taking your money, other traders are taking your money.

3 stages to becoming a successful trader

  
  Education
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  • Your ability to execute your trades is a function of the amount of fear you generate or the lack of it.  Fear is always the result of your beliefs about the threating nature of the environment.
  • Essentially, what you fear is not the markets but rather your inability to do what you need to do, when you need to do it, without the hesitation.
  • If you can’t execute your trades properly, even when you perceive the most perfect opportunity, it is because you have not released yourself from the pain contained in the memories of past trading experiences and because you still don’t trust yourself to act appropriately in any given set of conditions.
  • You were either immobilized by the fear of failure or you are struggling with a belief (value) system that say you don’t deserve the money.  Otherwise, you would have acted on your perception.
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