Saturday, May 19

Perfection and Discipline in trading

Before taking a trade how many times have you thought i will buy at bottom and sell at top.
How many times have you removed your Stoploss after feeding it but removed it once price started coming near Sl.
How many times have you lost all profits earned in a trade and end up being a losser
If you have the above mentioned problems in trading

Reason is need for perfection

A common trait among newer traders, or among traders that are not profitable is a need for perfection. With so much noise in the media, blogs, and forums about calling tops and bottoms, one would think it’s a trader’s job to predict such things. Expecting to nail the top or bottom is a recipe for frustration and inconsistent performance.
For the discretionary trader, perfectionism is the enemy of the good.  Trading is about making money while simultaneously controlling risk, it has nothing to do with perfectionism. All traders have some degree of perfectionism, but some have more than others.  The variation in perfectionism is due to personality differences, and the different career backgrounds that some people bring to trading.
Traders with strong perfectionist tendencies often equate taking a loss with failure. For these traders, a losing trade often marks the beginning of a new ....

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