The funny thing about perspectives is that even if one shares your perspective generally, his or her expression of that perspective often brings up enlightening details that both further define and enhance your own perspective. Such is the case with the email below. This articulate fellow really nails some key points about what we do. The points he makes are definitely worth sharing, and I thank him for taking the time to share them with me and now with you …
I’m commenting on your latest post about tough love … I totally get what you’re saying. Courage has nothing to do with trading; it’s all about confidence, risk management, patience, discipline and a firm understanding about the laws of probability.
Yes, risk management is a key point, but without the others, it is a moot point.
I’ve been trading for about 4 years and I was ready to pack it in several times, but every time I began to let it go, something happened. I began to see the charts differently; suddenly opportunities began to spring up that I never saw before. I began to understand what trading is really all about.
If nothing else, trading is about opportunity – find it and exploit it. The trick is to create a mindset that allows opportunity to come out of hiding. You see, opportunity is everywhere always; you just have to be able to see it.
Cutting losses short and letting the winners run. When I say this to myself, my eyes light up and I get all giddy! Whereas before I would shake my head knowingly but I didn’t really get it. Moreover, what was really interesting was it took the last amount of money in my account to really get that idea. I began to forget about the money aspect and just focus on the art of trading. I watch myself closely as I traded to pick up on bad habits that I had acquired, and there were a few. Once I made those adjustments, suddenly everything became very clear.
Aside from the “I get all giddy!” part above (which I love), two key points jump out here. The first is that good traders are artful, as trading is both a craft and an art. Focusing on the trading and not the money is so important. The second is “know thyself” and then make adjustments for what you know.
Trading IS a business, and a very unique one at that. Because it’s all about you. Here is a quote from a friend of mine who was a professional trader. “It’s you against the entire world, if you want to be successful in this business then you better get to know yourself and fast, because nobody sabotages your efforts, only you do…”
Well, that sums it up nicely, now doesn’t it? …
Trade in the day – Invest in your life
