12 Aug 13

The loser is changing markets, strategies, or trading systems. Making impulsive positions, trying to recoup operating over the previous loss, as if to take revenge on the market. Its capital is shrinking as he tries to recreate the pleasant sensation of winning. Increasing risk-taker, purchasing all the books with the final to win the final system on the Stock Exchange, seeking advice from consultants, blowing, inside information. Reverses the direction of their positions continually bend their positions when prices fall.

The loser does not realize that he can not stop because he’s addicted to the excitement of the game. A professional trader, if you have a long series of losses takes it as a sign that something is wrong. So to invest and review their methods and their analysis. You first have to change your mindset if you want to stop the losses and begin to recover. In the words of Mark Douglas The Disciplined Trader, trading is a mental discipline.

Neither more nor less. I also hit rock bottom a few times. I know how it feels. Then I stopped, checked the records of all my trades and found that among the three groups of errors (errors of method, errors of discipline and capital management errors), I always made the same five specific mistakes over and over time. My weaknesses identified five trading wrote them in a card and hit the side of the computer screen. So every morning, before launching any operation, read and check I will “fall back into the same.” Each day watching it right, such as Alcoholics Anonymous every day watching to stay away from alcohol. Investing in the stock market should be taken as a business to make money, not as a game. Reasonable losses always exist and are part of the business. But you have to tell when you lose as a professional and when you lose a player. Having defined the reasonable risk per trade (based on capital and the Stop Loss limit, including commissions), the practitioner will not accept losing a euro more, will no excuses, no false hopes and unemotional. To do otherwise would behave as players.


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