Maintaining composure while all about you are losing theirs is the sign of a seasoned veteran of the game.
Composure is a super power.
YOUR SUPERPOWER.
USE IT.
DAILY.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
Maintaining composure while all about you are losing theirs is the sign of a seasoned veteran of the game.
Composure is a super power.
YOUR SUPERPOWER.
USE IT.
DAILY.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
Was having a friendly back and fourth with a reply guy yesterday and he was insisting on buying the dip on SPY.
I explained that this is a false rally, volume is dwindling and price is going to collapse in the month of February.
He was having none of it.
In fact, the guy even sent me an image of his position - Let's put it this way, I wasn't surprised to see it was just a couple hundred dollars, because if your trading a five or even six figure risk position, you start to think a little differently, let me tell ya.
But it got me thinking about how you can see one thing but the reality behind it is totally different.
Take the blue sky for example:
The blue colour of the sky is caused by Raleigh scattering, which is the scattering of light by particles in the earth's atmosphere.
And because blue light is a shorter wavelength and a higher frequency than other colours it scatters more in all directions.
So is the sky really even blue?
Or is it just what we can see based on our current perspective?
Trading is the same way.
One person can look at a chart and say "It's going up, I'm going to buy" and then another person can say "yes, it's going up because of X reason and but it's going to change soon".
Both are right.
But both won't make money.
Only the person who sees beyond the surface will.
And that is trading, the adept who sees deeper and further always wins out.
The good news is you don't have much competition.
In fact it's fairly easy.
You just have to constantly observe and see what is already there.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
When people say "Trading should be boring" - they're kind of right, but mostly wrong - you see making money from your trades is extremely exciting, the opposite of boring - but here's what I think they mean - when you have a strategy that works wonders it turns into a process, a routine and some (not all) find routines boring, maybe that's why most traders lose because they're chasing a thrill over true satisfaction and mastery.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
When people say "Trading should be boring" - they're kind of right, but mostly wrong - you see making money from your trades is extremely exciting, the opposite of boring - but here's what I think they mean - when you have a strategy that works wonders it turns into a process, a routine and some (not all) find routines boring, maybe that's why most traders lose because they're chasing a thrill over true satisfaction and mastery.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
The Roman Empire was one of the greatest and most influential civilisations in the world and lasted for over a 1000 years.
But it fell in a relatively short period of time.
Mass immigration, high inflation, oppressive taxation, constant wars and the switching from gold to bronze all played a factor in the collapse.
I say this because it's quite a common mistake I see among investors to get overconfident on recent success and then blow everything on their next trade.
And just like Rome fell for a multitude of reasons, so can you.
It's not just one factor.
You could have analyzed incorrectly, become greedy, over-levereged, listened to bad advice, boredom etc.
Whatever the cause may be it's important to know that these mistakes (that have the potential to blow up our accounts) generally come after a huge victory.
So by being aware and having the ability to re-asses after a win (or loss) is super important.
Keep your blades sharp Ninjas!
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
Maintaining composure while all about you are losing theirs is the sign of a seasoned veteran of the game.
Composure is a super power.
YOUR SUPERPOWER.
USE IT.
DAILY.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
Fear & Greed Fear can make traders sell too early or avoid opportunities. Greed can lead to overtrading or holding too long. Balance emotions by setting clear strategies and sticking to them.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
Overconfidence Bias
Believing that success is solely based on skill can lead to overestimating one's abilities. Always reassess, learn, and adapt.
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Revenge Trading
After a loss, the urge to make it back quickly can lead to irrational choices. Take a break, reassess, and never chase losses.
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The Illusion of Control
Markets are unpredictable. Believing you can control or predict them can be detrimental. Focus on risk management instead.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
Anchoring Bias
Relying too heavily on the first piece of information encountered (the "anchor") can skew perceptions. Always look at the bigger picture.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
Anchoring Bias
Relying too heavily on the first piece of information encountered (the "anchor") can skew perceptions. Always look at the bigger picture.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
Loss Aversion The pain of a loss feels twice as strong as the pleasure of a gain. Be aware of this bias, and ensure it doesn't skew your risk-reward ratio.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
Revenge Trading
After a loss, the urge to make it back quickly can lead to irrational choices. Take a break, reassess, and never chase losses.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
The Illusion of Control
Markets are unpredictable. Believing you can control or predict them can be detrimental. Focus on risk management instead.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
Loss Aversion
The pain of a loss feels twice as strong as the pleasure of a gain. Be aware of this bias, and ensure it doesn't skew your risk-reward ratio.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
Confirmation Bias
Seeking only information that confirms your beliefs can blind you to warning signs. Always challenge your assumptions.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!
- #58
- Last Post: Aug 29, 2023 12:03pm Aug 29, 2023 12:03pm
- | Commercial User | Joined Apr 2016 | 175 Posts
Anchoring Bias
Relying too heavily on the first piece of information encountered (the "anchor") can skew perceptions. Always look at the bigger picture.
Download For FREE: The Ancient Ninja Scroll By Clicking HERE!