This paragraph is in my mind one of the most influential in all the trading literature, encompassing so many lessons about trading that its almost hard to know where to start, some of the themes covered in the seven lines of this paragraph include:
- Ego getting in the way of good practice.
- Adaptability.
- Trading as a psychological game.
- Overcoming yourself rather than the market.
- Trying to prove you are right.
- Relying on hope.
- Objective assessment of signs and signals from the market.
- Maintaining an open mind.
- The objectives of trading is to win not to be right.
Traders would do well to keep a copy of this paragraph visible as a reminder to try and ward off the inevitable occasions when they succumb to their trading demons.