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Biggest problem in trading is not knowledge, but the belief in
knowledge. Trading is "executing knowledge". After 25 plus years in
this crazy business of trading, the one and only thing that lets me
put on trade after trade is this.....a stop order. I know my limit of
downside so I can justify my trade. If after a few losing trades in a
row, then confidence will start to wane again. Remember the stop
order when the trade is placed. That limit of loss will give you the
power to place the trade.
If however, your fear of failure is based on not being able to play
the game, and it must paritially be viewed as a game, 'cause you are
short on capital, and if by losing, this puts you closer to leaving
the trading building, then cut back on the amount of your trades. All
of my biggest fears have come from losing too much because I became
complacent and did not place a stop. If trading is the ball-game, then
placing the stop is the pitcher. Do not do one without the other.
______________________________ Reply Separator _________________________________
Subject: Confidence
Author: <Wolbaum@xxxxxxxxxxxxx> at internet-mail
Date: 12/11/97 8:50 AM
My analysis is was bang on today and my timing was uncanny. All I needed
to do was phone in my order. But did I? No! Why? Lack of confidence in
myself.
Here's a question for the full timers out there. How do you maintain that
high degree of confidence that's needed to trade successfully over the long
term? Do you have any little actions that help? Thanks.
Scarecrow in Oz.
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