The importance of psychological preparation
You Must be able to take up to 11 (eleven!), nasty losses in a row without losing confidence neither in the perception of your own worth nor in your method.
This is the hardest trial of all, almost the full totality of new traders fall to this, and they are irrimediably lost.
I will link some books to learn how to pass this ordaly. It is NOT a walk in the park, it’s hard, hard, hard. Not in the concepts, they are completely easy sauce. Putting them in practice is a violent and ruthless experience that could seriously undermine your perception of yourself.
Do NOT understimate this step. I know you will. I know most of you will fall, it’s that hard to succeed.
This is where you will confront with your sickest, spiteful, liar, betraying, unfair, just accursed adversary: yourself.
You cannot trade profitably without learning how to live with losses, how to separate the loss from the self inflicted blame for the loss.
You cannot trade profitably without learning that the fact you just lost 15,000 dollars is not your inner fault, your persona is not guilty for that. The sin is not the sinner.
I cannot express in words what you will face, but only tell you that you WILL face it.
Whenever you will move your stop loss, whenever you will get so excited by a win and loosen your control and start over-trading you will unleash the adversary in you and he will deal you horrific psychological damage. You will hate yourself. Believe me, this will happen with clockwork precision.
You are an EvE player and just thought “phew I am not affected”? False.
EvE players are as affected as real life traders. EvE just happens to be infinitely more forgiving than real life. Unlike real life, you don’t go in jail for debts. You don’t risk losing a lifetime of savings in 5 minutes. Robotics tanks? No biggie, let’s wait for 2 years, it might eventually rise again. In real life you lost hard and fast, period.
If in the past you held on value losing stock by waiting it out, if you bought “by guts”, “had a lucky streak”, “doubled on the loss and made it back”, “gambled and lucked it out” then you are experiencing the same situation, you have the same problem. You just don’t feel it because it does not destroy your life but you still need the same psychology change and preparation.
Are you scared yet? If you are wondering if I am typing nonsense you should stop and read the books I indicated, expecially “Trading in the Zone”.
If you still believe you’ll make it without the psychological preparation teached in these books, you MUST stop reading now and forget you ever read this course. Otherwise if you try trading, you will be obliterated in your very soul, it’s that painful. I don’t hate you so much, please quit the course now.
If you believe you will read, understand the books and you will embrace what they teach, then you could almost begin trading today, for you passed the main stumbling block. Techniques are just a detail once YOU are in control, confident and shrugging in face to the losses, considering them just “operation expenses”.