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when I placed my order on the Thursday before the 1987 crash, I cut the order in half and only bought 25 contracts instead of the 50 I intended to buy. My fear cost me $125,000. Even though I believed with every fiber of my being that I was right, my fear of being wrong caused me to become cautious at the worst possible time. Was I being objective? Of course not. Being objective allows you to see the market as it is. You must put emotion, fear, and greed in the background to have any chance of consistently beating the market. We are constantly bombarded with information that contradicts our research, opinions, observations, and decisions. We must enter each trade with blinders on. With the objectivity to come to an informed decision and the discipline to carry out that decision, you will be on your way to consistent trading profits. So you see, I am not that much of a guru. |
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Neal: Someone once said trading is a difficult way to make an easy buck. |
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Doug: Trading isn't easy, and creating an objective, disciplined mindset to trade from is paramount in developing winning trading habits. If you're having trouble being successful at trading or you seem to always be fearful and full of doubt, the first place to look is at yourself. Our tendency is to take a mechanical process that we may have spent months or even years perfecting and try to make decisions based on emotions that may be counter to our plan or system. Even if you're right on occasion, not following your trading plan will result in frustration and losses over time. |
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Neal: If it looks like a duck, walks like a duck, and quacks like a duck, it must be a chicken. Is that what you're saying? |
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Doug: How many times have you been told that a piece of news is bullish, only to find a few weeks later that the same news is now bearish. Welcome to the world of smoke and mirrors. As humans, |
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