September 18, 2009 There's an old joke that the way to amass a small fortune in markets, is to start with a big one. Many big traders in history have merged and created fortunes more than once. Cast for not learning to control emotions. But it was great, because they knew, in their role as traders-discover, recognize and ultimately override. There is a reality that many are unaware when they blame the market, because it follows a trend logicaa according to the data or perspectives esperadasa a by investors. Survived by adapting to the trend, not those who claim that the trend suits them. It is he who decides on our earnings or losses is the * market * but we, ie our approach to it.
How many times have we heard similar stock market rigidities to: a the market is equivocadoa , a esta action should not have fallen but risen , a the market is doing the opposite of what you should do . It's like to risk crossing a low barrier and wait for the train that wrap if we are not sufficient mental capacity to not panic and cross the tracks without stopping to realize the error. And face the appropriate action: the mistake must give rise to immediate repair (close positions lost) relying on the mental fitness required to support failure and loss, something that not many are psychologically prepared to afford. The difference between good and bad that the first trader will take such action as routine, one more, a benefit while a loss, but bounded within that universe of 30-40% of failures in which all operative markets for a trader requires trained in management of secondary tools (fundamentals, technicals, astrology, or whatever the imagination) and the second will not see more than the frustration that off operation, as an extension of personal failure that drown in an ocean in a swirl of low esteem and loss of personal control.