WHO IS IN CONTROL OF YOUR STOCK TRADING?

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Learn how 10 is Greater Than 90 with The Crosshairs Trader's new eBook. Get you copy today!

 

 

I believe stock traders possess two personalities: one good and one not so good.  If stock traders have dual personalities then we must ask ourselves: “Which personality controls our trading?” The answer can make a huge difference in our trading success. 

 

 

 

 

 

Let’s take a look at the two personalities and label them SELF 1 and SELF 2.

SELF 1: THE NOT SO GOOD

Personality Traits: 

Places limits on your potential, raises doubt, questions your ability and judgment. Focuses on the past as indicative of the future.

SELF 2: THE GOOD

Personality Traits:

Reinforces self-trust and unlimited potential, builds on strengths. Feeds on experiences as improving the future.

QUESTIONS RAISED BY SELF 1 and SELF 2:

SELF 1:  You know, even though you followed your rules, the last trade did not work so are you really sure you want to go through this again?

SELF 2: No two trades are ever the same; you knew that before you entered the market.  It comes with the territory, so get used to it. 

SELF 1:  You had the perfect set-up on the last trade but it reversed on you immediately for a quick loss.  Are you sure about these rules of yours?

SELF 2:  There never is a “perfect” trade.  Anything can happen in the market and often does.  The only bad rule is one that is not followed.

SELF1:  That last loss cost you money.  Maybe you should be a little more cautious this time and not trade as much.

SELF 2:  Losses are part of the equation just as wins are.  You know the way the market works; this next trade could be the one that makes up for the last loss.  You trust your rules so trust your trade. Trade the same amount again and follow the same rules you did last time.

SELF1:  Do the trade this time but move your stop up a little.  You don’t want to lose do you?

SELF 2:  Allow the trade to work and trust your stop limit just as you always do.  You know that your stop is at a major support and if it holds then this trade could work just as you planned.

SELF 1:  You have not traded in four days. Is your system not working in this market? Do you need to look at something else?

SELF 2:  Patience will make you money.  Find something else to do with your life as you wait.  The market is testing you. Do not fail. Let other traders make money for a while.  You know: take turns.  Why not spend some time with the kids? Read a book? Enjoy the money you made so far this month?

Which personality is in control of your trading?  Depends on which one of these sets of questions you focus on.

 

Related posts:

1. CASHING IN ON STOCK TRADING REALITY Question: What kind of check can be cashed every day...
2. STOCK TRADING AS SIMPLE AS ABC? When A + B + C = D. A simple...
3. THE FORMULA FOR HIGH PROBABILITY TRADING: BIG CHARTS + CROSSHAIRS = QUICK PROFITS I developed my formula for taking quick profits using my...
4. THE STOCK TRADER’S CIRCLE OF SUCCESS (AND FAILURE) The following graphic describes two types of traders. The first...
5. THE ORIGINAL TURTLES TRADING RULES, CROSSHAIRS TRADING, AND THE BEGINNING TRADERS JUDGMENT Unfortunately, very few beginning traders have enough “education” money to...