"Not caring" about the money in order to win big

Discussion in 'Trading' started by pinetboltz, Oct 25, 2017.

  1. Hooti hit on a few key points above:

    1) Perfectionist in the Process: You can be a perfectionist in executing your process, but not a perfectionist in the results. Most people who are perfectionists have difficulty in trading because they are perfectionists in the results -- they don't like losses and they beat themselves up when they miss trades or don't pick the bottom or top and get all of the potential trade profit.

    2) Detachment: Detaching from the money and the results is a big key to success. This is essentially the same thing as letting go of the outcome. One way to do this is to set process goals. Sometimes you may need to implement personal "firewalls" to make sure you stay true to your process and avoid fear-based / impulse-based trading. For instance, I can only look at the market at certain times during the day.

    3) Joy in Trading, Not Excitement: Many traders trade for the excitement and the rush it gives them. Often, though, this is a problem because they are seeking that next hit of a dopamine and that may cause them to get involved in the market when they shouldn't be. Joy in trading, though, is completely different. It comes when you enjoy the process of trading and are focused on the proper execution of that process without regard to the results. As discussed before, joy in trading also comes when you have a rock solid belief in yourself for which you need no external validation.

    "Self-confidence arises as a sense of mastery in performing the tasks of trading." - Gary Dayton
     
    Last edited: Oct 30, 2017
    #61     Oct 30, 2017
    Hooti likes this.
  2. Hooti

    Hooti

    "Turning off" being smart is also an interesting idea/skill. A lot of really smart people fail as traders.

    Your plan of course needs to be smart.
     
    Last edited: Oct 30, 2017
    #62     Oct 30, 2017
    formikatrading likes this.
  3. I remember Dave Landry once referred to himself as a "Trend Following Moron." I think that concept is consistent with "turning off" being smart. Too often, traders want to out-smart the market when we really need to "dumb it down."
     
    #63     Oct 30, 2017