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Tyson Wolbaum wrote:
>
> 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.
NW:
Dear Scarecrow, If you are scared you are overtrading. Would you have
bet $1 on today's move? If the answer is no, then either there was not
a good opportunity today or you should consider another profession. How
about $10? $100? etc. In otherwords, there is some level of exposure
that is appropriate for your account and financial position that will
not and should not make you feel uncomfortable. Find the exposure point
at which you start to feel nervous and then cut that in half and see if
you are then relaxed. Remember, you can not control the market's risk,
i.e. volatility. You can control your exposure, i.e. the amount of money
you have at risk. If you are relaxed at 1/2 your $ nervous level, put in
your entry order, your stop, and go take a nap. If you can't sleep, cut
your exposure in half again until ZzzzzzzzAaaaZzzzz.
Sleepily,
Norman
Nap les in FL
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