>My feeling on daytrading is its totally reactionary.
Thinking
interferes. I'd love comments.<
Hi Glenn,
There is a kind of thinking that is based on emotion,
and it is this kind that interferes with trading- swing or
position trading, and even longer term trading, but
especially with day trading.
For example, if the thinking- the trading decision- is
governed by a set of emotions that are related to how
"the great trade" will change the circumstances of one's
life, then the trader is setting herself up for almost
certain loss and failure.
Anytime we approach the market in the same ways that
we habitually live our everyday lives- emotions playing
a major role- we are almost certain to lose, and, in the
end, fail.
The changes that are important are not so much the
market changes or those things that affect the market,
but the inner changes that are under the jurisdiction of
the individual.
This is why we hear so much about the necessity of
discipline. We need, as individuals, to be alert to
ourselves as much as we need to be attentive and
informed about the market, the sectors, and the
circumstance and dynamics that surround the stocks we
trade.
Discipline is perhaps the most difficult thing to achieve.
It is what accounts for the greatest, and the best,
changes in any individual's life.
To experience anything for the better, whether it be a
relationship, a performance art, a craft, or the business
of trading, we must always be willing to begin with
ourselves, not with another person, a market, or
anything external.
Our human tendency is to resist this- to want an easier
and softer way. Any time we honestly look into any
aspect of our life, critically but not with judgement or
self condemnation, we will see this tendency. Thinking
that change can be achieved this way is not real
thinking: it is what we call wishful, hopeful- emotional.
All this is not to say we should starve ourselves
emotionally, for a rich emotional life is healthy, and it
gives vibrancy and depth, and individuality, to our
personal lives. When we visualize our goals, there will
always be emotions attending the visualization, and the
process of achievement.
We need to set goals in trading, and we need to set the
rules we will follow. Sometimes, in our development,
we begin to develop an intuitive ability that is part of
our disciplined thinking.
The important thing to remember though is that this
intuitive ability only comes about as a product of the
disciplined thinking, and it is never a substitute for rigor
and self imposed rules.
Best,
Charliss |
