12
Nov

We Love Drama But Drama Doesn't Love Traders

There is a lot of drama going on in the trading blog-sphere today. Ted Turner once coined the phrase, "we love drama" and how true it is. For those who delve in the drama of interblog politics, readers are rapt with attention.

Poppycock is all I have to say. I have no interest in attracting trolls and haters. I am happy to just share my work and coach serious traders. But all that drama did inspire me to write about something that you all may find of interest.

Emotions!

One thing I often discuss is how most strategies work with discipline but the discipline is virtually impossible until we learn to cut the emotions from our work. While our emotions protect us in life and allow us to stay safe, they have the opposite affect in trading. Those emotions  often cause traders to abandon their strategy in the name of fear and are more likely to lead to high risk trading. They bring out the gambler in us.

Cowboys and gunslingers bragging on the nets about how to make that big score are preying on the naivete of nubile traders looking to get rich quick. This lack of risk averse strategy that allows the trader to keep emotions at bay usually leads to bigger losses.

The key to being profitable as a trader is to take small losses and bigger winnings. Don't be a gunslinger. Keeping risk ratios in check keeps the odds in one's favor. Accepting that every big win comes with a small loss, will help to keep your emotions in check.

gunslingerno

 

 

 

Leave a Reply

Back to Top

Password Reset

Please enter your e-mail address. You will receive a new password via e-mail.