Trader's Queries - Manual for trading - Part 2
Query : How to over come losses and become a profitable trader?
Answer can be written as a book. So I am posting it in parts. This is part 1. I have the link of part one below in case you missed it.
Step 5 : Understand why you hesitate or unable to make any change related to your trading habits.
Example : Person A knows he is gambling, but continue to do that. His reasoning for the behaviour is he thinks there are two outcomes.
Scenario 1 : I will continue to lose money if I did not take any step.
Scenario 2 : There is no guarantee that after taking efforts, I will start to make consistent money.
Why to take any effort when there is no guarantee?
Interpretation of scenario 1 :
I will be in a familiar situation.
I will be within my comfort zone.
I feel safe with familiarity, even though I am getting loss.
I am very passionate about trading(OH YEAH).
Emotions for scenario 1
Getting used to the emotions mentioned in step 3.
Starting to like the familiarity with the emotions mentioned in step 3.
Getting pleasure as it is the starting stage of addiction towards gambling.
Interpretation of scenario 2
I have to work hard to change my trading behaviours.
I have to learn new things.
I have to adapt new things.
I have to develop flexibility.
I have to accept change.
Emotions for scenario 2
Uncertainty
Uncomfortable
Possibility of disappointment
Unexpected outcome.
Now the question is why people prefer to trade or gamble. Does it mean they don’t like their job?
Everybody likes to get the feeling that they are in control. Even though they like their job, like the salary, it has its demand of completing the work in time, reporting to the superior and they get the feeling that they are compelled to do the job against their wish.
Now in trading to whom you report to?
Who is your boss in trading?
Answer is “YOU”. Thats why YOU like trading. “YOU” means your “EGO”.
(To be continued...)
Answer can be written as a book. So I am posting it in parts. This is part 1. I have the link of part one below in case you missed it.
Step 5 : Understand why you hesitate or unable to make any change related to your trading habits.
Example : Person A knows he is gambling, but continue to do that. His reasoning for the behaviour is he thinks there are two outcomes.
Scenario 1 : I will continue to lose money if I did not take any step.
Scenario 2 : There is no guarantee that after taking efforts, I will start to make consistent money.
Why to take any effort when there is no guarantee?
Interpretation of scenario 1 :
I will be in a familiar situation.
I will be within my comfort zone.
I feel safe with familiarity, even though I am getting loss.
I am very passionate about trading(OH YEAH).
Emotions for scenario 1
Getting used to the emotions mentioned in step 3.
Starting to like the familiarity with the emotions mentioned in step 3.
Getting pleasure as it is the starting stage of addiction towards gambling.
Interpretation of scenario 2
I have to work hard to change my trading behaviours.
I have to learn new things.
I have to adapt new things.
I have to develop flexibility.
I have to accept change.
Emotions for scenario 2
Uncertainty
Uncomfortable
Possibility of disappointment
Unexpected outcome.
Now the question is why people prefer to trade or gamble. Does it mean they don’t like their job?
Everybody likes to get the feeling that they are in control. Even though they like their job, like the salary, it has its demand of completing the work in time, reporting to the superior and they get the feeling that they are compelled to do the job against their wish.
Now in trading to whom you report to?
Who is your boss in trading?
Answer is “YOU”. Thats why YOU like trading. “YOU” means your “EGO”.
(To be continued...)
Comment:
This is part 2. Typo error in the first para.
