4 dangerous states of a trader. Obsessive Compulsive Trading
1. I must always be right
"The key to dealing with probabilities is good money management"
Unfortunately, many traders are unable to admit their own mistake. This is an internal attitude to one's own unconditional righteousness. In this case, they will blame anyone and anything for their loss, up to the forces of nature. Any market is a system of probabilities. This means that even the best trade can be a loss.
2. I must know everything
"Reduce unwanted psychological stress when making decisions"
Some traders believe that they can gain a very significant advantage by studying and considering literally every aspect of trading. News, economics, political background and indicators of all indicators. However, this is too much information, and it will lead to severe psychological stress.
Ultimately, this approach will provoke a phenomenon known as "analytical paralysis", when, due to a large amount of conflicting facts, a person falls into a stupor and is unable to make a final decision. Rely on what you understand and understand well enough.
3. I have to control everything
“Microcontrolling” the market in general and open positions in particular is very dangerous. It leads to overly emotional trading.
And this is already a direct road to impulsive deals, disruptions to the trading plan, ill-considered decisions and irrational reactions. This is a direct result of the inability to psychologically “disconnect” from the market. First of all, you need to believe in your trading system and trust it. And only then invest real money in it. Remember if you have a hobby or an interesting activity outside the market? Switch your attention to any topic not related to trading.
4. I constantly have to be in the market
"It is very easy to become addicted to the market and let it control your thoughts and emotions. When the market is the only thing you can think about, that is very bad"
Such dependence on the market, in its essence, is not much different from any other dependence, and this is already an extremely dangerous situation.
Overcoming this addiction can be very challenging. Development of your own trading system, which you completely trust, can help in this. And besides, a clear understanding of their actions in the market, drawing up a trading plan and its implementation. To some, such recommendations may seem trivial and sore. Perhaps I agree. But they still will not lose their relevance. Successful trading!
"The key to dealing with probabilities is good money management"
Unfortunately, many traders are unable to admit their own mistake. This is an internal attitude to one's own unconditional righteousness. In this case, they will blame anyone and anything for their loss, up to the forces of nature. Any market is a system of probabilities. This means that even the best trade can be a loss.
2. I must know everything
"Reduce unwanted psychological stress when making decisions"
Some traders believe that they can gain a very significant advantage by studying and considering literally every aspect of trading. News, economics, political background and indicators of all indicators. However, this is too much information, and it will lead to severe psychological stress.
Ultimately, this approach will provoke a phenomenon known as "analytical paralysis", when, due to a large amount of conflicting facts, a person falls into a stupor and is unable to make a final decision. Rely on what you understand and understand well enough.
3. I have to control everything
“Microcontrolling” the market in general and open positions in particular is very dangerous. It leads to overly emotional trading.
And this is already a direct road to impulsive deals, disruptions to the trading plan, ill-considered decisions and irrational reactions. This is a direct result of the inability to psychologically “disconnect” from the market. First of all, you need to believe in your trading system and trust it. And only then invest real money in it. Remember if you have a hobby or an interesting activity outside the market? Switch your attention to any topic not related to trading.
4. I constantly have to be in the market
"It is very easy to become addicted to the market and let it control your thoughts and emotions. When the market is the only thing you can think about, that is very bad"
Such dependence on the market, in its essence, is not much different from any other dependence, and this is already an extremely dangerous situation.
Overcoming this addiction can be very challenging. Development of your own trading system, which you completely trust, can help in this. And besides, a clear understanding of their actions in the market, drawing up a trading plan and its implementation. To some, such recommendations may seem trivial and sore. Perhaps I agree. But they still will not lose their relevance. Successful trading!
Comment:
What other states can you add in this list?
