I did not create the term psychological capital but it is perfect. The problem with some goal setting is that it focuses on a result and not the process. The goal of trading is money, cash, greenbacks, dollars, loonies, pounds, liras, etc. But that does not happen without a process or journey. A process does not happen without the little nuggets of motivation that occur on the way. This progression keeps us going through the hard times. A little practiced trick, action creates motivation. Money is an imperfect measurement of goal attainment.
You are not going to make money every day, especially in the beginning. Also, don’t be hypnotized by profiting every day, except in the beginning. I could probably make money every day but that does not mean it will be more at the end of the month. Amplitude verses frequency for me. In the beginning, profits/money buy you time to figure it out. Take the money, take it early and often. Your only goal is to be able to trade tomorrow.
I try my hardest to break even psychologically after every trade and every day. I call it maintaining trading environment equilibrium (TEE), it is important. Trades do not have to be connected, we force the connection. Trades are independent of each other, that does not mean you should completely ignore money management. I can preserve or take the steps to preserve psychological capital. I do not control what happens I control how I react. Let me say this another way. My will or ability, anyway you want to look at it, does fluctuate. Sometime is takes 10 seconds, sometimes it take 2 days. I do not control it by ignoring it, I control it by being aware of it and taking steps to get to break even. This needs to be applied to both the highs and the lows.
The more I preserve psychological capital the more I can focus on capturing capital, the kind that gets me to my goal.
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