Have you ever experienced doubt…or worry, or fear, or any of the other negative emotions that can sideswipe your results? Of course you have…you are human; and as a human you are an emotional being. Now, as an emotional being, you cannot take emotions out of the trading equation. Yes, it is possible to distance yourself from negative emotions that can distort your judgment and distract your thinking through training and consistent work at it; but to think you will ever be “totally” in control and/or devoid of emotions is an exercise in futility. It is far more effective to learn to “manage” emotions in order to maintain focus when you are in the trader trenches. Managing emotions is not easy, it means that when you get to that fork in the road and you have a choice between going left (falling off the cliff and essentially giving in to ego-driven tendencies while reaching for temporary relief) or choosing right ( doing what is in the highest and best interests of your A-Game). When you are trading from this proactive position and you are engaging in a mindset that is fiercely focused on what matters most in the trade, you are “trading to win.” The alternative is to “trade not to lose.” Let’s examine the differences in these two concepts a little more closely.
Larry Wilson in his book Play to Win asks whether your orientation to life is a play to win strategy or playing not to lose. A playing not to lose strategy is based on the need to remain in your comfort zone and constantly look for temporary emotional relief by giving in to impulsive behavior and hoping you get the results you want. Things must come easily when playing not to lose. People with this strategy are constantly looking for the magic bullet or the quick fix that will create results out of thin air with no regard for their development. The philosophy of playing to win on the other hand is about the notion that life is growth, that courage and… Continue Reading
