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Hi,
I have seen a number of ideas suggested for this, all the way from playing
cheep slot machines(to desensitize oneself), to seeing an analyst. I posted
this little thought a while back.
I have never heard a discussion about psychology here that
addressed the tendency to defeat ourselves when we take a risk(so that we
can say to ourselves; "told myself so"). There may have been such but I
have not seen it. For example, I have told others that learning to trade is
like learning to ride a bicycle. Your tendency is lean into the one
teaching you because you don't have confidence in the feeling of
equilibrium. However, when you learn to trust that feeling of equilibrium
it becomes a joy to ride. It is similar in trading. You act or react out of
fear and distrust until you learn to trust the equilibrium in the give and
take of trading. I believe that once you calm down and allow the market to
make it's move you will find a similar joy. You must also learn when to
calmly take your losses and move on.
The reason that you don't have a problem once you are in is that you get
mental relief from having taken the plunge, you are then resigned to go
with it. Actually, it should be the other way around, knowing when to get
out is equally important. Trade small until you feel the confidence. That
will also get rid of the "Pig". Pig was an old saying that some skiers used
to mean fear(of steep sloops etc.). When you truly understand something you
usually lose or at least can control your fear.
Best Regards,
Brent
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> From: asmith <asmith@xxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: Trading for a Living / paper trading.
> Date: Tuesday, May 26, 1998 4:11 PM
>
> >> In paper trading one is driven by a will to succeed. In real trading
> >> one is driven by the fear of losing.
>
> The above two sentences sum up the difference between day trading and
paper
> trading succinctly. Does anyone have any suggestions on how to overcome
the
> emotions of fear and greed when really trading? I am having a hard time
> entering positions, however, once I enter a position, I am fine - even if
I
> take a loss. Has anyone else had this problem? If so, how did you
overcome
> it?
>
>
>
>
>
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