Saturday, December 5, 2015

The Need To Be Right – Common Psychological Traps For Traders !!!!

Dear All,

            My experience tells me one of the biggest issues traders have is the ever present " Need to   be Right "


Some thoughts on what characterizes great and successful traders.


Great traders graciously accept losses. They don’t need to be right all the time.



Great traders focus on proper execution not on the outcome of a single trade.



Great traders concentrate on good risk management. They constantly manage their open positions.



Great traders are emotionally detached. Single trades do not affect their mood.



Great traders don’t compare themselves to others. They isolate themselves from the opinions of    others.



Great traders are not afraid to buy high and sell low


Conclusion:

Isolate yourself from the opinions of other people. Make trading decisions your own. Focus on proper execution. Have the courage to do the right think because it is Right .


The most important rule of trading is to play good defense, not great offense.
- Paul Tudor Jones



Thanks & Regards
Abhay Mehrotra

1 comment:

  1. Rightly pointed out.... this need to be right is actually in grained in us since childhood days and strengthened further... marks in class, now days anything less than 90% is a crime.. in our time it was 75-80%... need to be in right college, right job, right career, right life partner, right choices every time we buy anything from cars to onions and potatoes.... and now as a trader u will be wrong say even 40-60% of times and most important of all u have to accept it graciously ... tall order..which explains the high failure rates

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