Saturday, February 25, 2006

Accepting WINNERS, accepting LOSERS

I absolutely agree with you Joseph and I'd like to add my comment to this.

If accepting your winners will make you a Winner, accepting your losers will then make you a LOSER.
DON'T accept your losers, unless you like feeling and being a LOSER.

The better way of dealing with your Market calls, is to LEARN to KNOW, when you are RIGHT and knowing when you are WRONG. That way at certain points you will always be Right, and instead of becoming a LOSER you will become WISEer.
I know that we are talking about subtle psychological nuances, but very important ones.
Why? Because there could always be an equal and even better opportunity on the other side of the call. If you look that way on the market, you will always be aware of the opportunities on the both sides. So at points when you argue with Market and it tells you "you should have listen, you are on the wrong side", you can always get on the right side and turn in Profit.
If you have accepted your Loss, you would've most probably needed some time before entering again, and that amount of time you need away from Market after every Loss could grow to the point when you Quit, simply because you either lost your confidence or your money.
Determine price levels that will tell - confirm you being right or wrong should be important part of your strategy from your Money Management decisions point of view too.
Managing your Risk will give you better chances of surviving, but we can't talk about Money Management if we didn't set a Realistic Goals first. Set your Goals first, then decide if you have better chances and opportunities here or you should try a Casino.
ID

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