I know we don't like using quotes on this forum but forgive me on this occasion.Euler wrote:I've been studying unsuccessful traders in recent months to try and understand why they struggle. One of the things I have picked up on is there over reliance on the negative.
When I enter a market I am looking for opportunities. If I execute on one and it fails I dump it and move onto the next one. Decent trades present themselves all the time.
When I've looked at people struggling they often scratch trades that would be profitable, i.e. they feel lucky to have avoided a loss and let losses run too much. As a consequence they never really get the upside needed to turn profitable.
Just an observation for you..
Holding onto a negative is strange because if you look at how we develop it is a complete turnaround. I know that may seem strange but think about it a bit more when you read my thoughts on the matter.
We are conditioned to get what we want...but...we tend to change that conditioning at some point in our life. I think social circumstances will have a bearing on that switch over point. As a child can you remember asking for that ice cream, chocolate, etc? You would keep on and on until you hear the magic word "YES". You would find yourself in other situations where you wanted something and you knew which buttons to press to ensure you get the person who makes the decision to make it a positive one. I know we didn't always get what we wanted but it wasn't for the lack of trying!
Then suddenly that ability goes away and a lot of us forget it. Who remembers going out for a night and seeing a pretty girl ( a good looking guy for the ladies on here) across the room. Now honestly how many of you would say "I can't ask them, what if they say no?" I was never like that, I would go and ask because the worst that could happen would be a no. I must add that I was not always successful but the law of averages dictated I had to be successful at some point.
This change tends to see most people go into a defensive mode. This is not a criticism of anyone, this is a natural behaviour but more importantly it is a learned behaviour. Even more important is the fact we can change this behaviour and go back to our childhood methods if we really want to. Some people see this as regression because their social surroundings suggest it is negative. My view is simple, ignore the others, think positive and give it a go. If you get it wrong, think about why and then try again.
Sadly too many people wait for the perfect opportunity. Thinking back to the night out, it would be like the gorgeous girl or guy coming over and making a move on you. That sounds wonderful but let's face it, we aren't that lucky are we?? So we need to make our own luck and give it a go with a child like "devil may care" attitude. I don't mean jump in and waste money I simply mean think positive and give it a go.
My dear old Mum used to say to me "Don't trouble trouble until trouble troubles you!" I wasn't sure what she meant when I was younger but it applies to almost every situation in life, especially trading.
