Neverism- things you should never do, never say and never forget.
Never trade with out a plan.
Never trade with money you can’t afford to lose.
Never say the market can’t be beat.
Never say it can’t get worst.
Never forget that trading is a privilege.
Never forget life is always more important than trading.
Never forget if it was easy everyone would be doing it.
Which ones would you add?
| As long as prices continue to move, that movement will create opportunities to buy low and sell high or sell high and buy low, and these opportunities are available for all traders. You create the game in your own mind based on your beliefs, intents, perceptions, and rules. It is your own unique perspective and no one else’s and the secret is, you can and do choose how you perceive events. Even if you are not aware of exactly how to control and change your perception to make other choices available to yourself, you are still choosing, even if it is out of ignorance |
Top Trader Frustrations
Stage 1: Denial
This is when you have the first sign of a loss. However, you justify this loss. You deny it’s true form and decide that it could be a winner…but you just have to “wait it out.” “Afterall, I bought a lot of time on my option.”
Stage 2: Anger
The loss judt got worse. Now you look to place blame. Freakin’ blog! I hate the marketcast anyway!!! Why didn’t I do my own analysis????
Stage 3: Bargaining
If somehow this stock can move in your favor, you promise you won’t do it again. Or even worse, you start to think of ways to salvage. Desperation sets in.
Stage 4: Depression
It couldn’t get worse huh? WRONG! Now this makes a huge mark on your account, your spouse is going to kill you, it is going to take forever to make it back, and you start to panic.
Stage 5: Acceptance
Alright, I will take the loss.
In trading you MUST take action and control. It’s not the market makers, or the talking heads, or your neighbor, or any of the experts or people you entrust with your money that are causing your losses or your poor investing performance. You are making the decisions, directly or indirectly. Any trading and investing decisions made in your accounts are all DOWNSTREAM from you and your initial decisions, so you can make different ones in the future.
But you must take measurements. You must have a plan. You must assess, then make DECISIONS to GET you to your FINANCIAL, HEALTH and RELATIONSHIP goals.
In trading we teach a very simple and effective way to make consistent profits in the markets. There is a learning curve and much of that curve is you getting to know you. It’s understanding the psychological aspects of trading profitably with consistency and making those thought process changes that are necessary to get you in a winner’s trading mindset.
For many people this is a challenge. The actual steps and actions you must take are not laborious or physically draining, they are simple things that need to be done but will go against the natural instinct to just want to go through each day on ‘autopilot’.
And this is why many a trader who is struggling slips into the ‘blame’ or ‘victim’ game. Being aware of this is important and we are all human and capable of slipping off track……but the key is to catch it early, forgive yourself for it, and then learn and ‘zig zag’ your way back onto the path that will get you to your goals.
I like to collect quotes from books I read, and here you have some good quotes from the book:
