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Wise Quotes

A loser can not cut his losses quickly. When a trade starts going sour, he hopes and hangs on. He feels that he cannot afford to get out, meets his margin call, and keeps hoping for a reversal. He take his punishment, and when he gets out of the trade, the market comes roaring back.

Seorang pecundang tidak dapat memberhentikan kerugiannya secara cepat. Ketika posisi tradingnya membuatnya sengsara, dia hanya berharap dan tergantung. Dia merasa tidak dapat terlepas dari situasi, menghadapi margin call, dan berharap adanya reversal. Ketika akhirnya dia menerima akibatnya dan keluar dari pasar, pasar tersebut berbalik ke posisi yang sudah ditutupnya. (taken from Trading for Living, Dr. A. Elder, chapter Risk Management)

Growing Forex Diary

Forget Gurus… Your Experiences Are The ONLY Ones That Count

Friday, October 5, 2007 - - 0 Comments

by Norman Hallett

You read about the Gurus of trading.

There's a group of them that started with their last few dollars and ran it up to millions because of a simple strategy they can teach you.

There's another group of Gurus that claim hard work, long study and signing up for their newsletter will lead you to where you want to go.

All Gurus want you to "learn from their mistakes."

They ask, "Why should you make all the mistakes I've made, when you can benefit from my experiences?"

Now being somewhat of a Guru myself, I think there IS a certain truth to this query, but not the way you probably think.

Other trader's experiences can make you aware of what to expect as you embark upon your trading.

Knowing what to expect should translate into having less "blindside" occurrences.

However, when you come across the forewarned learning experience, emotions will come up. These emotional situations (fear, overconfidence, freezing) are up to YOU to handle.

Here, if your going to be a successful trader, is where the learning takes place… in dealing with your emotions so that you can follow your trading plan.

If you blow the situation, your supposed learn from it and go on.

And learn from it, you must... or even the best trading system won't save you from doom.

Your Mental Toughness is going to be the key to whether you make it or break it as a trader. I know of two MAJOR things that you can do to develop your Mental Toughness for trading.

The first is to keep a Journal.

I know that sounds like work, and who wants more paperwork at the end of the trading day?

However, soon after you force yourself to start writing down your day's trading experiences, you will see the power of the technique.

It becomes the place where you will be honest with yourself. You'll find after just a week or so of keeping a Journal of your trading experiences, mistakes and all… especially mistakes… that when you are confronted with a trading situation that you blew before… in the back of your head you'll knoq that if you do the same stupid thing again you're going to have to report it to yourself… in your Journal… and…THAT will give you the strength to "do the right thing."

That's the power of keeping a Journal.

Whether you just buy a spiral notebook (like I do) and start writing, or you make it a religious experience and buy something leather-bound…

You will find that the discipline of keeping a journal, is a practice that will flat-out make you a better trader.

The other way to get Mentally Tough is to train your mind with as much intention as exibit when you test and run your trading system.

There are a few psychologists I've bumped into over the years that seem to have enough of a handle on what training is … so they may be qualified to help a trader.

But I prefer the process of literally programming the mind for discipline and focus, via putting the mind in an alpha brainwave state and then submitting the right suggestions to it.

If you were to learn the simple rudiments of self-hypnosis, that, in my opinion, would be a great way to go.

This way you could tell yourself exactly what you wanted!

This is what Tiger Woods does for his golf game. Why not do something similar with your trading?

Mental Toughness is my business.

Make it part of yours.

Keep a journal. Feed your mind.



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