The more we try to win and not lose, the less we tolerate information that could tell us that we are not going to be able to get what we want. The more we block information, the less we will be able to perceive an opportunity and act in our own (best) interest.
Learning more and more about the markets for the sole purpose of protecting yourself from pain is going to complicate our tradingbecause the more we know, the more we will expect from the market and the more we will suffer when it does not do what we expect. We involuntarily create vicious circles, in which the more knowledge we acquire, the weaker we become, and the weaker we feel, the more driven we feel to continue studying. This is one Mortal trap. We become stock market and financial market theorists. This cycle will continue until you get sick of trading and stop trading or until you realize that The root of your problems lies in your way of seeing things and not in your lack of knowledge..
It’s true, some traders invariably lose, often even losing everything they own or even quit trading because they can’t take any more emotional pain. Many traders study the market tenaciously and have enough of a winning attitude to trade in such a way that, despite numerous difficulties, they eventually learn how to make money. But, they learn to earn money only on a limited basis, for they still they have not learned to control the negative effects of euphoria or to neutralize the risk of self-destruction.
Euphoria and self-destruction are two powerful psychological forces that can have an extremely negative effect on our results. These are forces that we won’t have to worry about until we win, or until we win regularly, and that’s where the problem lies. One of the main characteristics of euphoria is that it creates a feeling of absolute confidence. where the possibility of something going wrong is virtually inconceivable. On the contrary, The mistakes that result from self-destruction have their roots in the conflicts that traders face to deserve money or success..
It is when we win that we are most likely to make the mistake of trading beyond what is reasonable, taking positions that are too large, violating our own rules and generally trading as if we have no need for limits. If you dedicate yourself to this professionally you will have periods of success, followed by periods of failure.
There is 3 major categories of traders. The smallest group, probably made up of less than 10% of active traders, group those who win regularly. Its capital curve is growing steadily with relatively minor declines. Not only have they learned how to make money, but they are no longer subject to the psychological forces that cause sawtooth cycles. The next group that is made up 30 to 40% of active traders groups those who lose regularly. Lots of losing trades for an occasional winning trade. the most important group from 40% to 50% remaining, achieves sawtooth results. They have learned how to earn money, but they do not have the set of skills that must be mastered to keep the money that is earned. Consequently, your capital curve resembles a roller coaster, made up of a smooth, steady rise followed by a steep decline, then another smooth, steady rise followed by a steep decline. The roller coaster cycle repeats itself ad infinitum. What group are you in? It is vital to carry our capital curve, even if we operate in simulation.
Those who navigate between periods of success and periods of failure, these series always end the same way: by huge losses that are the result of euphoria or self-destruction. In this state of euphoria or absolute confidence, the risks are no longer perceived because euphoria gives the feeling that nothing can go wrong., and that there is no need for rules or limits to guide our conduct. Under these conditions, taking a more important position than usual is not only tempting, it’s irresistible. When we take a more important position than usual, we are in danger. Combine the shock of a larger-than-usual unfavorable move with the firm certainty that the market will do exactly what we expect, and you have a situation in which even the slightest move in prices in the opposite direction of our position can lead to a trade. state of “intellectual block” and paralyze us.
When we finally recover we will be stunned, disenchanted and betrayed. We wonder how something like this could have happened. We will have been betrayed by our own emotions. If we do not understand this, we will have no choice but to blame the market. If we think that the market hates us, we will feel compelled to study it to protect ourselves. The more we study, the more we will regain confidence in our ability to win. The more our confidence increases, the more likely it is that at some point we will reach the threshold of euphoria and start the cycle all over again. A losing cycle.
One of the mysteries of success is that even winning you can be at the end of the chain; which means that if we win and we haven’t learned to create a fair balance between security and domain, or if we haven’t learned to recognize and neutralize all our self-destructive potential, we will end up losing sooner or later.
This is one of the reasons why a professional trader, those of us who operate in the market every day in our privacy, are reluctant to count what we win and lose. Because we can hurt you a lot if you just take note of my big win in dollars or euros, or smile at my losses. It’s not that simple. There has been a bestial inner growth, I had to tame my horses: euphoria, self-destruction. I don’t know you, I don’t know how much it will cost you to master your emotions, your impulses. Why do you think that more than 70% of the people who win the primitiva or the lottery within a few years have lost everything? It’s not just winning, it’s much more.
this is why i like it Traders International. Because we are by your side at all times, those wild horses will appear sooner or later, you need to surround yourself with people who have tamed them, who know them, you need coaching, support, mirrors, models. All this we offer you without a time limit