Wow! I can’t believe it’s been this long since my last post. I have been so busy with my job change and living life. There have been a few times I wanted to write about my trading, just no time to do it. Even today I have to work on my grades for my classes and paint a bathroom in my house.
I bought the first Market Wizards by Jack D. Schwager for $1 at a used book store about a year and half ago, I have been trying to finish it so I can move on to another trade book. I’m at the chapter about The Psychology of Trading, which is an interview with Dr. Van K. Tharp. I’d like to summarize a paragraph.
After studying the subject of psychology and trading, here are his characteristics of a losing trader.
- Is highly stressed and has little protection from stress.
- Has a negative outlook on life and expects the worst.
- Has a lot of conflict in his/her personality and blames other when things go wrong. (Would probably not have a set of rules and would be a crowd follower.)
- Are disorganized and impatient. They want action now. (Not willing to wait for the trade)
Now think these points over. Can you relate to any of them? I know I can.
The good news is behavior can be changed; it takes lot of work though.