If you want to be a successful trader, you must make sure not to deny reality in any phase of your trading. You can not deny losses, price direction, mistakes you make, that undercapitalized, or a whole series of things you'd rather not think about it.
Many traders think the best way to deal with unpleasant ideas, events, or personal character flaws is to close your eyes and pretend not to exist.
Let's face it, trading can be difficult, at times very difficult and it is important to focus on reality. Denial takes your focus from the very thing you need to concentrate on - price action - regardless of the timeframe. Your mind must be clear, so you can watch the market and see what is really there.
The way I learned to handle denial was to simply write down and confront all possible ideas I had trouble accepting. Some thoughts I could fix and others I simply had to accept. But facing the truth about what and who you are is the only way to deal with denial. You must understand that for the most part the only things that can change itself. Other things you just have to accept. You must accept the reality of skating, for example. You have to realize that indicators often give false signals, and that there is no magic moving average nor is there a magical oscillator.
must realize that some winning trades are just lucky trades and had nothing to do with your skills as a trader. By the same token, you will also experience the bad luck that prices make a sudden and unexpected move against you.
rather than wasting your time in denial, concentrate your mental energies on improving yourself and improving your trading skills. Work on improving the capacity for observation. Understand that you must survive the markets in order to benefit from the experience of the market.
There is really only one real problem with their trading - that is your problem! However, the problem manifests itself in two ways: first Market conditions have changed and you are not. 2nd You are no longer doing what you did when you were winning. You have drifted. You are not consistent.
The first aspect of the problem due to poor observation. The market has changed and you have not changed with it. Poor observation stems from a variety of small but very important problem. You were married in the market, or trade. You May have allowed their egos to get the best of you, and you no longer humble. I'm just name a few here. I challenge you to think about many things that can distract you from seeing when market conditions have changed. Make a list of things that they face.
Another aspect of the problem stems from inconsistency. Here again, you should make a list of those things that cause you to be inconsistent.
"Maybe I was a good trader at one time, but market conditions have changed and I May not be able to keep my reputation up." This is an issue that all traders face at some point: keeping up their reputation. When one makes big profits trading, it is tempting to tell neighbors and friends how well you are doing. It's great when you're making big profits, but tracking performance is often a drop of even the most astute trader. Again, denying your need for fame and glory, or pretending that you can maintain an unrealistic reputation, will use their psychic energy and interfere with your ability to concentrate. Huge profits tend to go in humble, so try not to build your reputation. Admit that you have difficulty keeping up with appearances and just quit doing it.
One fact that traders wrestle with continuously is the notion that "Trafficking is not a legitimate job ."
Many traders struggle with the legitimacy of trading. Some traders find that they can simply remind themselves, "Trading provides liquidity and helps control prices." Other traders, however, think that it's not good enough and need to find more meaning in their daily trading activities. For example, they can focus on how trading helps them provide for their family, or perhaps plan to donate some of their profits to charities, they see it as a personal
valuable. The thing is, I do not deny the possible truth to this idea. You'll be better than accepting and working through them, and then just moves on. Denying they exist, on the other hand, will use time and energy.
Unacceptable beliefs tend to lie in the back of your mind. They are there, lurking, and when threatened, they can strongly affect prospects. So, acknowledge unacceptable ideas, and when you admit the possible validity of such ideas, you will neutralize their potential influence. This will free up limited psychological resources, allowing you to focus all your energy on trading profitably and consistently.
Joe Ross
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