Saturday, June 23, 2012

Pancake Time

When traders go flat, things start to look more clear to them. During having the position on, traders are blinded by their bias and precluded from fully considering both sides of the equation. It is our human nature to defend our views a bit longer than needed, so we are usually behind on fully realizing that we are wrong. Traders who repeatedly stand in front of the oncoming freight train, without quickly learning the most likely consequence, should step away from trading and seek some psychological training, either by reading books or hiring a trading coach. By the way, I personally do not believe in trading coaches, because traders get used to being babysat, and will usually fail without an extra pair of eyes looking over their shoulder. That leaves books as a helping hand, and I strongly recommend for struggling traders to explore that avenue first. All a confused trader needs is some guidance on how to mentally prepare for the next trade. Trading psychology books will also teach a trader how to deal with sudden failure and/or success. Note that both could be equally detrimental to trader's career.

I enjoy being flat. It gives me an opportunity to research and approach the market with fresh mind and absolutely no bias.

I am currently flat as a pancake, and ready to react to market's signal, whichever way it tells me to go.

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