|
It’s true, of course, that trading is a balancing game. We must balance the possibility of loss against the probability of profit. We need to keep both in mind, because while we must reach for opportunity we cannot overly risk our capital. The question is one of where you put the primary focus of your attention and intention.
We balance the size of the profit against the size of the loss. Lots of small profits and a few giant losses and you’re doomed to failure. Lots of small losses and some large and larger wins and you’re on the road to major success.
You can choose, and choose again, where to place your attention. This effects your perceptions and your interpretations. What you perceive and how you interpret that perception effects your conclusions. Those thoughts underlie your emotions which in turn generate your actions. Fear and desire determine the kind of trader you are.
Fear causes you to jump out of winning trades way too soon, causes you to cling to horrible losing trades, makes you freeze doing nothing when the moment of opportunity comes, and makes you chase those trades that have long since passed you by.
Desire enables you to learn and thoroughly test winning methods. It enables you to trust those worthy methods and facilitate them in a timely way
Let me make it simple. Focus on what you desire. Reduce your fears to reasonable cautionary planned actions, and look away from what you fear to what you do really desire. You want and choose to be a winning trader.
|