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With regard to the discipline required of
successful traders and the many good points in
Mark Douglas's book, I would like to draw your
attention to an article by Alpesh Patel in the
latest edition of Bridge Trader.
> The picture that is evolving in my head is that
> having a trading system
> is important, but, it is MUCH more important to
> be disciplined in your
> trading, and to practice wise money management.
> Lack of discipline and
> poor money management are two of the greatest
> "killers" of beginners
> according to Tharp and others.
> Patel:
"Many traders, armed with their trading plan or
strategy, will often hastily and prematurely enter
a trade. Their decision is often driven by fear;
the fear of the missed opportunity. Their mind
will be screaming "quick get on the trade, you're
going to miss it, so what if all your criteria for
entering a trade have not been met? Most of them
have, so get on the trade. The big traders
wouldn't hang around."....."The leading traders
have a different perspective on opportunity.
Counter-intuitively they know opportunity knocks
once, twice and then kicks the door down."
The author goes on to make some excellent points
about how successful traders are risk averse ("you
do not need to risk a lot to profit a lot") and
how they view losses ("Top traders are totally at
ease with losing"). I have not read Patel's book
The mind of a Trader: Lessons in Trading Strategy
from the World's Leading Traders, but the Bridge
Trader is free of charge (albeit patently
commercial).
Regards,
Philip
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