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chological gap between risk-taking and truly accepting the risk you are taking, with profound implications on the bottom line. |
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Neal: What does it mean to truly accept risk? |
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Mark: The best traders can admit they are wrong and take off a losing trader without the slightest bit of emotional discomfort. If you haven't yet learned the skill of risk acceptance, no trading systemtechnical, fundamental, or otherwisewill compensate for your susceptibility to the kinds of psychological errors mentioned above. When you think about it, or if you go back and review your trades, you'll most certainly find that it was the psychological errors that diminished your results, not your trading system or methodology. If you do this simple exercise and find this is the case, it will be a clear demonstration that more than anything else you could learn or do as a trader, your success is a function of your ability to maintain confidence, discipline, and focus. |
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Note: Mark Douglas may be reached at www.markdouglas.com. |
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