Mellow Day Not Really In The Mood To Add On | July 30, 2015
http://eminitutor.com/ Mellow Day Not Really In The Mood To Add On | July 30, 2015.
Not knowing how to trade and venturing into the live cash market causing repeated bad experiences can devastate a person emotionally. Not knowing how to trade but having enough capital to keep going is not much of a game changer. In fact this postponed recipe for disaster is even more devastating. The larger the account size, the longer it will take to deplete, and the more ingrained this emotional turbulence will become. Fear and uncertainty will be programmed repeatedly until it becomes the new default. The real underlying reason most likely is being caused by ego which is also an emotion. It’s not me, its my system, my indicators, my money management skills, the market is biased, and so on and so on.
Often they focus on preserving their capital thru money management. Delaying the inevitable if you will. Hoping that somewhere along the way before they run out of money things will turn around. Just because they have a million dollars in their account doesn’t mean they will preserve it by managing it properly. If they don’t know how to trade, they simply don’t know how to trade. They need to stop fooling themselves. They will lose it all just like the guy with the 5k account. The only difference is that it will just take them a little longer. Money management is crucial, don’t get me wrong, but you need to be able to trade first.
This is important, very important. You need to be honest with yourself and determine whether or not you actually can technically trade before you blame emotions on your issues. Genuine emotional fear is warranted if the trader can’t trade. This legitimate fear is incurable in terms of regulation and control until the triggering mechanism is identified and eliminated. The perpetual onset of this emotion will always be lack of trading skills. The emotional problem can’t be fixed, until the cause is fixed.
On the other hand, misplaced fear which is an unwarranted emotion, can be regulated and controlled. There is no reason for it to be there in the first place other than sheer habit from past categorical placement. This type of misguided, misplaced, emotion is initiated due to error. This can be regulated and controlled. There is an emotional problem, where there should be no problem. This can be fixed. (more)
