Amateurs and the uninitiated come to the market with dollar signs in their eyes and quickly find out that they lose more than then win.
In my experience they are initially drawn to the markets for the excitement and the promise of making money.
They think in terms of dollar signs, looking at the big dollar swings in names like TSAL, AMZN, and AAPL.
Professionals first try to uncover as many blind spots as they can and learn over time that survival in trading comes down to playing superior defense.
They think in terms of percentages and are promiscuous in what they trade.
If they can’t express their edge, there is no trade.
Protecting your capital is your primary concern.
If you have big loss, you’ll be angry, bitter, despondent, and about a million other things that aren’t part of a professional traders emotional vocabulary.
Two, if you lose big, you won’t have any capital to trade in the ensuing days, weeks, or months and this is a game of longevity.
This will lead to your shutting down emotionally.
If you lose your confidence, become a philanthropist – at least your can direct where the money goes.
It’s a marathon.
Know what you’re going to trade the day before and don’t sit in front of the computer screen all day.
Put your stops in and go away.
You can’t steer the market.
Whatever you’re trading is going to go where it’s going whether you’re watching it or not.
When you turn off the screen you have peace and free up enormous amounts of mental energy that you can use in other rewarding areas of your life.
Click here to get your free copy of The Inner voice of Trading audiobook.