The Disciplined Trader

Inverts the sense of their positions continuously, it doubles their positions when prices fall. The loser do not realize that cannot stop because he is addicted to the excitement that produces the game. A professional trader, if you have a long series of losses takes it as a sign that something is wrong. Then it stops investing and reviews its methods and its analysis. You first have to change your way of thinking if you want to stop the losses and begin to recover. As Mark Douglas in The Disciplined Trader, the trading is a mental discipline. Neither more nor less.

I also played bottom a couple of times. I know what it feels like. Then I stopped, checked all my operations logs and saw that, from among the three groups of errors (errors of method, discipline errors and errors of capital management), I always committing them 5 specific mistakes, over and over again. Identified my 5 weaknesses of trading I wrote them on a card and stuck it next to the computer screen. So every morning, before launching any operation, the leo and I note that not I will go back to fall into the same thing. Every day watching do well, as the anonymous alcoholic every day watching stay away from alcohol. Invest in stock market should be taken as a business to make money, not as a game.

Reasonable losses will always exist and are part of the business. But we must distinguish when you lose as a professional, and when you lose as a player. Once defined the reasonable risk by operation (according to the capital and Stop Loss limit, including commissions), the professional will not accept losing one single euro more, will come out without excuses, without vain hopes and emotions. Otherwise would be to behave as players. DaveN this article belongs to eldaytrader.blogspot.com authorizing the free reproduction of this article when click in its entirety and the respective credits to the author and link are given to the source of origin, i.e., eldaytrader.blogspot.com original author and source of the article.

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