There are few words that get thrown out a lot that do not share the same context as their everyday counterpart.
Consistency– if anything other than your process is consistent you are looking at it the wrong way. If you are consistently making the same money everyday and the market is changing you are doing something wrong. Consistently getting the same reward because you are taking the same risks will hurt you over the long term. It means that you took too much risk some days and not enough on others, meaning you are not taking full advantage of risk and it will take advantage of you. To watch a video click here.
Risk– when it comes to life risk can be a bad thing. It means not looking both ways before crossing the street. Risk is like breathing when it comes to trading. It is the only way to stay alive. It can be toxic air or clean air know the difference before taking a deep breathe.
Loss– losses are a part of trading they need to be handle the same way as wins, the psychology should be determined by the way it was realized more than what was realized. The exception is big losses/risking more. You will have more control of amplitude than frequency so take advantage of it.
Expectation– it is great to have expectation in life it will make you work harder and give you a sense of direction and accomplishment. Expectation in trading should be written in pencil not stone. Expectations to the constant changing trading environment will limit your ability to see. Creativity is an essential trait for discretionary trading.
Progress– trading is psychologically challenging because your input and the output come out in cruel amplitude and timing. There are false positives and false negatives when it comes to progress. Your progress needs to be measured over a longer period of time. This is hard because many do not have the capital or psychological capital to withstand the duration. It is a fine line because you do not want to want to go down with a sinking ship but you need time to effectively evaluate the situation. Many new traders do not take the time to think about the serious effects that changes have.
What words do you think are bull@#$%?
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