I noticed that not only the right tools and knowledge affect the result. It’s also what kind of person you are and how you feel about trading.
For myself, I have identified three vices that greatly interfere with achieving results.
▪️PERFECTIONISM
Perfectionism often leads to a situation where the pain of losing suppresses the satisfaction of winning.
In an attempt to feel “satisfaction,” perfectionists often strive for unrealistically high ideals and set themselves exorbitant goals. They feel that they will achieve the desired state of satisfaction if only they reach point X (point X can be anything, including attractiveness, wealth, popularity or achievement).
Since point X cannot be achieved, perfectionists use their ideals to criticize themselves when they fail to achieve the required level of performance.
The leitmotif of the perfectionist’s emotional state is the following phrase: “I’m not good enough.” Perfectionists have to work harder and harder because they never feel competent, worthy or knowledgeable enough. Thus, even when a perfectionist makes a profit from trading, he will always be focused on the part of the market movement that he missed. When trading does not go well, he tries to find various reasons to blame himself for his mistakes.
If something goes wrong in a trade, a positive-oriented trader will ask himself the question: “What lesson can I learn from this situation?” rather than “What is wrong with me?” The best antidote to perfectionism is to reassure yourself: “I will do better in future transactions.”
It's important not to miss these best deals while you're criticizing yourself😉
▪️FEAR
“I'm only rich because I know when I'm wrong” - George Soros quote.
This means that you can survive in the market by being able to admit and notice your mistakes. Mistakes are good. We can use them to optimize our trading, better understand the market, and deepen our knowledge. If there are mistakes, it means we don’t know something, we can’t do it, or we’re doing it wrong.
It’s not a shame to be wrong and make mistakes, it’s a shame to not correct mistakes and continue to do the same thing. If you look at mistakes from the point of view of experience, then you can see your weak points and begin to strengthen them.
▪️GREED
Markets are always on the side of fear or greed. Now greed is taking over. Everyone wants to earn millions from scratch and immediately. An excellent story for sales marketing, but utopian for trading.
When we are driven by greed and the desire to make a quick profit, we often make decisions impulsively, guided by emotions. This leads to the draining of the deposit and trade into the minus.
You should always beware of greed and fear. Greed can be a little better than fear, as long as it doesn't take over. The desire to earn more is natural and normal. Putting everything on the line, making impulsive decisions not backed up by real knowledge, following signals for the sake of making a quick buck is a so-so story.
Investing in yourself and your development is the best investment of all time!
Happy trading everyone.💪💪💪
