|
PureBytes Links
Trading Reference Links
|
>Harley responded to Gwenn:
>
>> 1 - Don't trade to be right. What you label mental maturity hid a true
>> desire to be right nevertheless.
>
>I am not quite sure what to say. Don't most people want to be right /
>correct when they develop a trading strategy and then enter a trade
>based upon it. So of course I want to be right. But maturity and right
>are two separate things.
Harley,
We all want to be right about our trading plan over a period of time,
but there is no need to be right in the current trade. Some will lose,
some would have won even bigger if you only knew, and it doesn't matter.
If your proven system calls for 3 points, and you start second-guessing
it by expecting more or settling for less, you will probably guess
wrong 75% of the time and fall into a vicious psychological trap of
uncertainty, trying to be more accurate than your system.
If your second-guessing is consistently right, you may be a rare
intuitive trader, in which case you don't really need systems. Or
you may be responding to additional input which should be incorporated
into the system.
>But I have to say form a psychological
>point of view, people do hope that their trades turn out well. So when I
>read what you say about hope and trading it is a bit of a bull shit
>statement. Now if a person is hoping more than planning a strategy then
>yes that is not good. But if a person puts a great deal of effort into a
>good strategy and hopes that it works ( while in the trade) then there
>is nothing wrong with that.
It's hard not to hope that the trade you're in works, but it's
misdirected, because the greatest plan in the world will have some
losers, and it doesn't matter if this is one of them. The other
side of the coin is to not be afraid this trade will fail. You
don't want to change your plan because of current (fleeting) hopes
and fears. Instead, hope that you will execute your plan flawlessly,
and fear that you won't. Direct them at yourself, not the market.
Your plan already states what you hope. No additional hope is needed.
Wayne Moody
wlm95@xxxxxxxxxx
|