You is What Holds You Back
90% of folks fail at trading due to some very natural reasons. One of these is emotion. Emotion conflicts with being a trader.
Is good, but not in trading. It is good to want to be better, but greed is not the way to get there. If you are expecting to learn too fast and play too big, that is letting greed take control of you. If you come into trading not wanting to take your time to learn or are trading too heavily to make up losses, this is also a symptom of greed playing a role in your trading. You need to weed out this emotion and learn to control it.
Fear holds you back, fear gets in the way. Fear of missing out (FOMO) makes you chase, keeps you from executing your game plan properly.
Ego and pride
For a trader, ego means that you don’t want to be wrong, don’t want to take a loss. We think we are right but as Mark Douglas says ‘anything can happen in trading, no matter how right we think we are’.
We want to be hopeful; it keeps us in painful losses. We talk ourselves into keeping or holding it. It’s not a question of smart or stupid. It’s just one of those characteristics that us humans have that sets us apart from the rest of the animal kingdom. But when it comes to trading, it can work against us.
We can’t out-run all of these emotions. Find out what triggers you, what makes you tick. What is the emotion at work in you, that is holding you back? Your primary goal is to learn to think like a consistent, successful trader. When you accept and know your risk, you will become comfortable with your strategy and be more in control of your emotions.
‘Anything can happen and trade accordingly’ – Mark Douglass from Trading in the Zone