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Discipline

Dramatic and emotional trading experiences tend to be negative. Pride is a great banana peel, as are hope, fear, and greed. My biggest slip-ups occurred shortly after I got emotionally involved with positions.”

Ed Seykota

I don’t buy what I like, I buy what I can sell later at higher price.

Unless you are Buffet and capable to accumulate enough shares to impact management, your shares are just pieces of paper and you should treat them like such.

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It’s the greed factor that corrupts the way people think in this business. Unfortunately, I needed a 6 fig loss to remind me how stupid greed can make a person. Needless to say, from here on, or until I recover some of these losses, trading will be disciplined.

A Trading Journal Is Like Sex

So why is keeping a trading journal like sex? Well it’s because…

     “When it’s good, it’s really really really good!… and when it’s bad, well, it’s better than nothing.”

     Now, we’re not just saying this to get some laughs – this is trading, we take trading seriously, and we take the above statement seriously.

     There is information out there on keeping a trading journal – but not nearly enough as there should be. 

    We won’t go on about the merits of keeping a trading journal – it should be obvious how important a journal is to your trading success. 
    Most people start one but don’t keep it going – which is a tragedy really as you only get the benefit of keeping a trading journal over time. 
 If you’ve tried and failed to keep a trading journal going; perhaps start again even in a small way, and keep it going through the good days and bad. You will find that not only does it get easier – it becomes a habit when you see how much it helps your trading. 
 Most importantly – remember that a bad trading journal is still better than no journal at all.

Focus on Being

The one thing that is at the core of every person’s trading, no matter what tools are utilized, is a human being. The Professional Traders recognize that being is the start of the entire process, who they are as people, as traders. By focusing on yourself first and then on the rest, you address the core of your trading business. Just like every sports team looks up to its coach for direction or like a company looking up to its CEO for direction the results of your trading all begin and end with you as you are the captain of your own ship. It is you, the human being, making all the decisions about trading like what to trade, when to trade, what resources to use, what strategy to use, the knowledge you will acquire, who to listen to and so on. Professional Traders develop and maintain a very high quality of being. Being is more important than doing. If you are fatigued or stressed, your judgment can be impaired. If you are naive or ignorant you are more likely going to make mistakes. If you are anxious or scared you will not be able to think clearly as you would when relaxed. If you are emotional in trading you will see losses in your account. No matter what you do if you are not at 100% of what you should be you will not the results you wish for. (more…)

Commitment

When you trade from commitment—and do what you said you would do—you generate an extraordinary amount of energy. You begin to see opportunities in the market that you couldn’t see earlier. You do not need to struggle. All you need to do is to show up and participate in the context of the new trading target. Trading in terms of an expanded target means having the courage to look for what is missing in your trading strategy. This becomes the source of the breakthrough you can produce.—-Trading to Win, Ari Kiev

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