There is something about yourself that you may really not know. Something that you will deny even exists in you until it’s too late to do anything about it. It’s among the reason you rise up in the morning, the sole reason you suffer the shitty boss, the sweat, the blood and also the tears. This is because you would like people to understand how attractive, good, generous, wild, funny and clever you actually are. “Fear or revere me, but please think I’m special”. We share an addiction. We’re approval junkies. We’re all in it for the pat on the back and the gifts. The “hip, hip, hoo-rah.” check out the clever boy with the badge, polishing his trophy.
Because we are all human, we do not want to accept that we are wrong about anything, including trades. The ego wants to uphold a perfect version of ourselves allows nothing more but successes not failures. Many traders collectively lose many dollars trying to guard the ego’s version of reality. Our goal should be to trade without ego.
“The greatest enemy will hide in the last place you’d ever look.” Caesar 75 BC
You must recognize what’s keeping you from taking your trading to another level. The majority of the time, it’s your ego. How many times have you made a great trade and walked away with your chest puffed out thinking ‘I am the greatest trader in the world?’
“The only way to get smarter is by playing a smarter opponent.” Fundamentals of Chess 1883
The market always reminds you the person in charge. Try to always use same way to approach each trade, ditch each previous trade when entering a current one. Reset your mind and expect to lose money on each trade, and this could assist you recover from the super-trader ego after a pleasant winning trade! Ego must be left out of your trading. Check your ego at the door, have a stop loss, and stick with your plan.
The ego may be a person’s sense of self-esteem or self-importance. The ego is a mental construct that can be both on a conscious and unconscious level. An ego is that the self-concept that an individual tries to guard and keep safe from pain and destruction. A trader has got to trade the maths and their own trading system and abandoning signals and their trading plan in favor of their own ego may result in stubbornness, self-delusion, and big losses.
- Most market predictions are ego based. A trader wants to be ready to say they called a top or a bottom or had an excellent stock pick. Signal and system-based trading may be a path that removes the necessity to predict you simply
- Stubbornness is an emotion that flows from the ego as it does not want to be proven wrong. Many times, this results in letting a losing trade still run against a trader. Egos do get trouble taking stop losses because they hate to be
- Egos lock into being bearish or bullish and let their opinions lead their trading. Following the particular price trend creates better odds of success than having an opinion on what should happen
- You should not let trading consume your entire life. The markets should be just one of several belongings you neutralize life. A diversified life outside the markets with friends, families, hobbies, learning new things, and staying healthy will assist you keep perspective during losing streaks and draw downs in trading
- A profit and loss statement can not define your self worth. Your profits are more of a mirrored image of whether the worth action is conducive to your method currently not whether you’re an honest trader or not. Your egos have got to be determined by whether or not you followed your trading system with discipline, consistency, and risk management.