Long ago, I struggled with fighting for my established market opinion with tooth and nail. It was a mistake. Why?
Because one of the most important evolutionary principles is true for the market survival as well. This is nothing other than the ability to adapt.
2. "Gery, are you in a position?"
I remember, once I explained to one of my good
friends why I believe that a product is long,
although it fell continuously.
At the end he asked: "Gery, are you in a
position?".
He was a completely right. You tend to see
situations as you wish just because you have a
position in a certain direction. A lot of hidden
psychological "internal programs" lie behind this.
Let's look at a few.
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3. Hidden psychological "internal
programs"
Cognitive dissonance reduction: that means
we cannot admit that we have made a wrong
decision, we keep our position even if it
seems that the end will bring a huge loss.
Ego drama: we think we are always right. And
if it turns out that we are not, the ego is
damaged, and if it cannot accept something,
it starts to create an ideology around it.
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4. Hidden psychological "internal
programs"
Inflexibility: Once we decided that it is long,
then it is long, that means, we do not admit
that we made a mistake.
Failure: if I was wrong, I am a "loser", but I am
not - it's part of the game, too!
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5. Which animals died out?
Those who were unable to adapt to changing
environmental conditions. This is refers to traders
as well. If you open a position and are not willing
to recognize that the market is not going to the
direction you thought, sooner or later you die out
as a trader. There is nothing shameful about taking
a loss and changing your vision, if you can clearly
see that the initial decision was wrong.
I know, it's hard. It is a bad "feeling" to admit that
you were not right and you lost again, but this is
the key to survival!
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6. Which animals died out?
As Alan Greenspan once said:
"Amateurs want to be right. Professionals
want to make money."
How true this is on the market!
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7. Build your loss in
You have to accept that you can be profitable if you treat
losses at least as well as your profits. Be aware that this
is part of doing business. In order to produce gains, you
need losses as well. It feels like a business. To generate
revenue, you have to spend money, which is nothing
other than the loss. You have to hire staff, pay for office
rent, equipment, etc. All that is needed for your
company in order to make profits. Without this, you
cannot succeed. Trading is the same!
Love loss and change its meaning!
Loss is the necessary good, not the bad...
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8. Feel free to ask me!
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Email: gery@optionsrules.com
My webpage: http://www.optionsrules.com/
You can find me:
Facebook: https://www.facebook.com/OptionsRules1
YouTube: https://www.youtube.com/user/optionsrules
Twitter: https://twitter.com/optionsrules
LinkedIn: http://hu.linkedin.com/pub/gery-nagy/6a/513/261
Skype: opcioguru
