Trading Psychology

MANAGING GREED

My objective in trading is not to be right or wrong but to manage my risk captial with a modest expectation.

MANAGING FEAR

If I trade today, I will expect to lose, and I will expect to experience my longest losing squence and my worst drawdown. Before I place my order,I will debit my Profit and loss spreadsheet with my expected loss. I will welcome my loss because I want to be the best loser and a long-term winner.

MANAGING HOPE

Even when I lose money today, I will expect to have a good day, since I have followed my trade plan, which has a long-term positive expectancy.

MANAGING PAIN

As a trader I know my life will be a world of pain. When I lose, it will hurt. When I win, I will think about the missed opportunities, and it will hurt. When I am not in the market, I will believe I am missing out on the next big move, and it will hurt. When I investigate new ideas only to discover they do not work, It will hurt. I know that maximum adversity exists to fill my trading experience with disppointment and pain. I know its intentions will be to diminish my risk captial and stop me from trading. I know maximum adversity exists, and I know its potential. I will endure its pain. I will persevere. I will succeed.