I met a very interesting and useful article in Forex Magazine. I recommend everyone to read and think about their “obstacle course”.
Van Tharp is a trading coach. He – author Books “Trade – your path to financial freedom”, and is also known for its classic correspondence course, helping traders achieve maximum trading results.
There are ups and downs in all areas of life.. When trading the market, there are many such periods.. To make a profit in periods “takeoff”, you must admit or even “‘Rejoice” periods of falling. Чтобы получать прибыль, you have to take and loss. And, perhaps, if it would be helpful, then you could actually rejoice at your losses.
I have been professionally engaged in psychology for many years. I know, what if someone does something good, then i can выяснить, how do they do it, understanding their views. In this way, when such a person goes from point A to point B easily and freely, then i can define, how they do it and teach it to others of people. Some people make money easily trading, and I studied these people for 25 years of practice.
Turns out, that one of the main problems of people is to move from their current position to the desired goal – all barriers or obstacles, they constantly face every day. There is a common solution to these obstacles. – make them your allies. Don't worry about moving from point A to point B – just take it favorably, when you bump into walls.
If you trade in the market, this is one of the biggest obstacles, which you will face – this is a wall of losses. It will be quite difficult for you to deal with financial markets., if you are not ready to lose. It's almost impossible. It's like wanting to live, but at the same time strive only for inhalation, without exhaling. Or for a walk, when you are ready to use your left leg and avoid your right leg. How it all doesn't work, trading without losses will not work.
When you want to be right, you don't deal with obstacles. Instead of this, you force events. When you want to make a profit on today's trade, даже при том, that she is currently suffering great losses, you are not dealing with today's obstacle. Accept this obstacle and be ready to accept it.. If the market tells you, that it's time to go out and take the loss, then do just that.
I have already mentioned, what good traders usually know, at what point in the market to exit a trading position, to preserve your capital. Timely loss collection is essential – this allows you to save capital, so do it is without any regrets.
but, if you don't understand, that the loss has nothing to do with, to be right or wrong, that is – only part of the process, and it could turn into a disaster. What happens in this case – you fight every loss, and in the fight they usually get bigger. For example, if you are afraid to take a loss in size 500$. then you can easily see, that this loss grows to 1.000$. Loss in size 1.000$, when not taken on time, can easily escalate into a loss in size 2.000$. И в результате – unprofitable trading system.
Think about it, if you have a problem with taking losses, then you can easily turn a good trading system into a losing system. And if you don't understand, what is your problem with taking losses, then it can be a problem for the trading system. Or if you follow someone else's advice, then this can be a problem for your advisor or money manager.
Quite often, traders shift their relationship with the market when developing various systems or transferring funds to professional managers.. Now, old fight, which they used to lead with the market – not accepting, what the market gives them, becomes a similar struggle, which they have with their system or with their new advisor. When they become disenchanted with the market after a series of losses – it's time to miss the really big movement, they avoid their system, until the results are really good. When the system shows huge profits, they jump into the market, just to see the reversal of the movement. And the same thing happens, when they transfer money to management. Their desire to be always “правым” makes them choose the best fund, when it is at the peak of profitability, to face a very likely string of losses. This is all – тоже самое.
В психологическом отношении, if you do not perceive your obstacles and do not work with them, then you just find another way to bump into on them again. Вы должны понять, that walls arise for, for you to face them. When you accept this fact, then you, surprisingly, barely even notice, that there are walls. The result there will be a new level of success in the market.
Good traders understand, what can they easily get 10-20 losses in a row. This – just part of the trading business. That's why, accept it and move on. And if you're in trouble accepting this fact, то должны понять, that you yourself are the problem and deal with it accordingly. But, certainly, this – already another topic.
