VEGAS TRADES GOLD IMAGE

VEGAS TRADES GOLD IMAGE

Friday, January 27, 2012

THE PATHOLOGY OF TRADING



                                        They See Everything

Why does a highly intelligent, extremely disciplined jet fighter pilot, flying a $100 million dollar plane slam it into a mountain and end up killing himself?

How does a grossly overpaid movie actor end up destroying himself thereby ruining a lucrative career?

There simply is no human endeavor that can make you do more things you don’t want to do than trading.

Ohhhh yea, I know you’re up there. Getting a good laugh are you? C’mon man, cut me some slack here will ya? Geesh, can’t you *&%$*@! rally when I’m long? !!! You take my stops out;, you hunt me like I’m game. Yea, I’m gonna teach you!! Ohhhhhh no, c’mon now – for %*(*&^#$* sake, I hate you. Thanks, I need more pain. That’s it, I’m outta here!!”

Exactly 10 minutes later.

“Ha ha, I’mmmm backkkk! Oh man, pleezzzzzzzze don’t do this. Thank you Trading Gods, YOU have ruined my life.”

What the heart can conceive, the heart can deceive.

The problem is that you can’t live on the surface of this yo-yo. People who should know better have no PLAN B.

What’s PLAN B?

There exists non computable problems and issues that have nothing to do with a particular market you are interested in trading. They will always crop up from time to time, and no matter what you do, they will continue to exist. How you handle them will define you as a trader.

I know many of you buy rallies and sell breaks in the market. It should come as no surprise that most of the time you lose money trading. That urge to “get in on the action” will pull you into situations that are unknowable and most times unprofitable. Feel the urge from above?

Let me be frank and to the point so there is no misunderstanding of what I am saying: Plan B is simply walking away.

Sounds simple doesn’t it? Let’s see you do it next time instead of compounding a problem that takes away a large chunk of your account!

Have a wonderful weekend everyone! Catch my commentary on today’s action at http://vegaspamm.blogspot.com

-vegas

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