I have spent a long time trying to understand why I was losing so much money in the past…
I used to buy many books that I thought would help me “change” my ways in my approach to managing my mindset.
Below are a few words of wisdom from all the books i have read in the past.
I believe they will serve…The following below may resonate with some of you.
1) The Market Reinforces bad habits – If you have a position that goes against you by 25% and then goes to break even…You install in your minds that the next time you are down 25% it will go to break even…Don’t play this game. Take a loss, don’t wait to break even.
2) The true mark of an amateur trader is one who blames their trading behavior on the following:
“The Analysts are crooks”
“I was on the phone”
” social media said pump or dump”
3) The professional trader sees things like this:
” It is my fault: I traded too much leverage in relation to my account”
” It’s my fault: I didn’t stick to my account parameters”
“It’s my fault: I knew there was risk holding this trade. I knew it was a marginal trade”
In order to be able to manage our decisions when we trade and the result of these actions is to accept “Accountability”
Most of the traders that lose are the ones who cannot accept the reality of trading. You hear me say it “Accept you cannot control what happens next” yet you can control how you behave by controlling the decisions you make by being systematic and objective in your approach.
Easy to say than do?
A boxer…In order to achieve the “Best Haymaker” – He knows what he needs to consider…Balance, speed, range. If he feels either of the three are not aligned, he knows he will not achieve the best haymaker. What is the best haymaker? what is the best trade?
It doesn’t exist…However. Accuracy will provide you feedback on how well you land the haymaker, (trade)
There is a common theme in boxing…”The Money”
Floyd Mayweather…He has made a lot of money. Is he motivated by money? YES…But can he back it up with his ability? Yes…
You see, Tyson didn’t care about the money…Each fight for Tyson was a matter of survival…
He knew that he had to survive…He knew that money would be the end result but when you have a machine like Tyson, who knows that survival is the route to success, then you focus more on the execution of your attack. You pay more attention to your speed, your power, positioning, fitness…Because the end result is money…
Your goal is to be like Tyson…