“I'm sure, what Amazon will grow significantly next month”, Tom tells his buddy Fred during a coffee break. “Why do you think that??”, Fred asks skeptically. Tom answers: “classes start next month, and students and teachers will need to buy Books; this should increase sales, which means, and share price. ” Fred objects: “Maybe, but it may not be so easy. This is just one of many possible factors., and the price may depend on many other reasons, which you probably missed”. Disappointed with poor support from a friend, Tom screams, “You are such a pessimist”.
Fred answers calmly, “I am not a pessimist; I – realist; trading is not that easy, how do you think”. Pessimism Can Be Man's Worst Enemy. If you think, that the goal is impossible to achieve, you will not have the desire to mobilize resources and work tirelessly, to implement it. But extreme and unrealistic optimism – much stronger enemy of the trader. If you put too much confidence in a poorly designed trading plan, You will lose money. There is a reason that, that pessimists are often realists. It is worth taking a closer look at this postulate., at least philosophically. Scientists have compared optimists and pessimists by, how are they, playing games, assessed the likelihood of their success. The results of these studies are unexpected; pessimists were more realistic in their assessments, than optimists.
Optimists overestimated the likelihood of winning, at the time, how pessimists were scrupulously accurate. These results are thought provoking: Pessimists turn out to be realists. No conclusion should be drawn, what you need to be a pessimist, to get the best trading results, but a skeptical view of things is sometimes worth considering, as a possible advantage. Most people tend to feel completely in control of the situation., even somewhat omnipotent. When it comes to a deal, but, this way of thinking can be misleading.
It is often more useful to think, that pessimism can actually reflect realism. When you think, that your plan is immune to mistakes, it is useful to look at it from the outside and question it. Ask yourself: “am i too presumptuous? What can go wrong, how to? Maybe, better to be a little more skeptical and self-critical, before, than to act”. In other words, sometimes it is beneficial to think, what is possible, “Pessimists – actually realists”.
Trading and investing in the US stock market
Blog of a professional trader Good_trade . Trading secrets. Teaching. Investments. Cryptocurrency. Training Brokers NASDAQ NYSE