Do you want to be right, or do you want to make money? These are my notes from chapter 11 of the Tradementor series by Tom Hougaard.
Paper trading is not real. There are no emotions involved.
Four trading fears
- Fear of being wrong
- Fear of losing money
- Fear of missing out
- Fear of leaving money on the table
How to make a change
- Take small steps
- Incremental steps
- Because large steps create fear
Become a winning trader
- Trader without fear & hesitation
- You will be wrong
- Let winners run
- Push your winners
You need 2 beliefs
- A single trade is random
- A batch of trades is predictable
On any given Sunday, you can either win or lose. You cannot control the outcome of a single trade, so do not stress about it. It doesn’t mean that you need another system or another course or another book.
When you flip a coin, you don’t worry about the outcome, because you know the result is out of your hands. But when you trade you want to be right and when it goes against you it feels as if you have failed, even though this single result was also out of your hands. You cannot predict when the losing streaks will happen. All you know is that it is a mathematical certainty that it will happen.
- Don’t start to hesitate
- Don’t start to pick trades
- Don’t start to skip trades
- Don’t change the rules
- Deal with the pain
- There is no perfect system
- One 1 trade, the outcome is random
You are just 30 trades away from the trader that you want to be.