Detached Attachment - Trading Psychology

Trading
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The psychology of successful trading can be broken down to a 2-step process.

  1. Attachment to a well backtested trading plan - It’s just amazing how we falter when asked to do n-steps repeatedly day in and out. Among all that life throws at us if we can train our mind to follow a set plan, great windows of profitability tend to open out.

  2. Detachment from the outcome - Focus on money and we submit ourselves to be guided by greed and fear. Only when the heart looses the craving for money is it fully ready to follow a plan and behold great outcomes.

Objective persistence is way better than subjective indulgence in the market.

8 Likes
2

Rightly written. For successful trading, one need not focus on just the profit alone. Profit will automatically come when our strategy is executed properly. Our first priority should be rigorous testing of the strategies.

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Si vis pacem, para bellum