I have encouraged all of my trading students to spend at least as much money on personal development and mental management as they do on software and trading systems. I do really believe that trading is 90% mental, 80% money management and 10% signals.
Ask yourself how many times you have missed a trade by hesitating or getting out too early. If you analyze these mistakes you will find that either you did not believe the signals or you were afraid to give back a small profit.
You soon realize that you are not trading against the market, but you are trading against your beliefs about the market: and ultimately, you are trading against yourself.
Some of the most significant errors I see or hear are:
- I want to trade live now, and they avoid practicing
- I have no self discipline
- I am trying to get back to even before I quit for the day
- and the “If only…..” excuse
The market is not out to get you. You are out to get you! You are trying to make up for something in your past or current situation.
On my website I have recommended many trading and mental management books. Well I have a new one where you can prove to yourself that thoughts are things and that you create your own success. Pam Grout has written “E-Squared” Nine Do-it to Yourself Energy Experiments that prove that your thoughts creat your reality.. Let me know what your think.
About Bill
