Basic Dog Psychology
Some of you may remember the movie Point Break. The scene where Patrick Swayze’s character “Bodie” said ” It’s basic dog psychology. Fear creates hesitation and hesitation will cause your worst fears to come true”. Great line as this is so true in so many aspects especially trading.
The basic dog scene
In my early trading career it was the second guessing, hoping and trader stage fright that was killing me. I had great ideas and I knew what to do with those ideas but when the moment of truth came I couldn’t push the button. I found every excuse in the book not to take the trade and of course when I realized I was right on the trade and I left uncountable profits on the table that just magnified the problem and the anger.
For most this is a larger issue than you think. Things in the marketplace happen so fast and the window of opportunity may only be open for a few seconds you simply can not afford to hesitate.
Example take a look at my FIO trade from this morning. The entire trade lasted only 1 minute, that’s it, 1 measly minute.As you can see from the time stamp if I would have hesitated a fraction of a second I would have missed out on 40c profit. Same with AOL and QIHU trades. Look at the total time duration. You can see stalling or hesitating can kill a good idea in a minute
Time stamped trades from this morning
There are many remedies to fix this problem. The first of course would be preparation and limiting the decision factors. I know for myself it took a good 2 years to kick this habit so I know first hand what a hindrance it is but more importantly what it takes to get rid of it and get rid of it for good.
If you want to take your game to the next level you need to surround yourself with the best. Talentless sporting teams with bad coaches never win titles. Employees who don’t learn how to perform at their workplaces get fired. People without discipline and motivation get fat, suffer from health problems and die early and traders who don’t find coaches and mentors usually find themselves frustrated and broke within months. Don’t be the undisciplined, lazy, fat, wannabe. Get you crap together and take a free 14 day trial to TheLincolnList here.