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Difficulty in pulling the trigger is due to fear of loss- either monetary,
or self esteem related. In order to place trades more easily, a number of
issues should be considered:
1. Do you have a clear plan for entering and exiting trades?
2. Do you have confidence that your plan/system is profitable? Have you
gone over previous trades to get a feel for your plan/system's strengths and
weaknesses?
A system trader should go through the chart to see how the sytem operates,
and to build confidence in its profitability. An intuitive trader should
pan through a chart bar by bar, or use a simulator product.
3. Accept all losses before entering a trade. Come to realize
consciously/subconsciously that losses are just part of the game, and not to
be taken personally. Most of us have been socialized to believe that
losses as bad, and shameful The sooner you are able to reverse this, the
easier it will be to change.
Generally speaking, what creates all of these problems in the first place is
our minds. With the Olympics in high gear, its interesting to watch how
the athletes cope with very similar conditions. Notice all of the mental
preparation most go through. Visualization, practice, preparation. While a
computer based system lacks the ability of the mind to discern complicated
organic set-ups, realize that being able to analyse a market under trading
conditions effectively, and then placing a trade in a timely efficient
manner require a substantial investment in understanding, and controlling of
your mind. Realize that this takes years to accomplish, and don't beat
yourself up over the many mistakes that are part of trading.
Finally, be sure to read up on the subject. Some good books are:
Aerodynamic Trading- Constance Brown
Trader Vic- Victor Sperandeo
The Way of the Warrior Trader- Richard McCall
The Disciplined Trader- Mark Douglass
also consider becoming acquainted with a Martial Art, Zen Meditation, or
other method that teaches mental discipline, and quieting of the mind under
all conditions.
Good Luck,
Chris Lober
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