Think and Grow Poor

Discussion in 'Trading' started by bluedemon77, Oct 4, 2006.

  1. bluedemon77

    bluedemon77 Guest

    My apologies to Napoleon Hill. What I really mean to say is the time to think is not when you're trading. Your mind can bend reality and make facts seem to verify the existence of mirages. I spent a lot of time developing my system, back testing it, paper trading it and now trading it with real money. Unfortunately, it's not perfect, so I'm inclined to second guess it when I think something is going to happen other than what my system is telling me. Every time I do that, I either leave a lot of money on the table by bailing out prematurely or get in at the wrong time when I think the market's making a move that my model didn't reflect. Sometimes I'm right, but on average my model is smarter than I am. Thinking has cost me thousands of dollars. Today alone, I could have been up $2k if I was following my model, but instead I'm down $1k due to thinking. It's so damned hard not to think, though--habit of a lifetime.

  2. Learn to change <i>in</i>correct thinking to correct thinking, and it will reflect directly inside your P&L via 180 degree change.

    Napolean, et al had it right: learn to think properly, profits will follow. Today was all about buying the charts, looking for pull backs and/or breakouts all the way. Learning to think "continuation" instead of "reversal" is all it took to succeed today.

    Best Trading Wishes!