November 30, 2024

Today's Reading Sharing

18. To maintain long-term profitability, when you think about trading issues, you must learn to think without being influenced by your mental processes, whether intentionally or unintentionally. This is to avoid basing your decisions on things that make you happy, fulfill your expectations, or help you avoid pain, thereby concealing, blocking, or selecting information.

The threat of pain generates fear, and 95% of the mistakes you might make stem from fear.

How can you think about trading issues in a way that no longer involves fear, thereby freeing yourself from the influence of mental processes, and preventing yourself from blocking, concealing, and selecting information?

The answer is to learn to accept risk.

19. Accepting risk means you accept the consequences of trading, and emotionally, you will not feel uneasy or fearful. This means that when you think about trading and your relationship with the market, you must learn not to let the possibility of making mistakes, incurring losses, missing opportunities, or not making money trigger your defensive mechanisms, guiding you away from opportunities.