October 19, 2012
- in Uncategorized by schooloftrade
Past Trades are Simply That!
This is a classic Poem that sums up what I am about to write
about.
about.
The Moving Finger writes; and, having writ,
Moves on: nor all thy Piety nor Wit
Shall lure it back to cancel half a Line,
Nor all thy Tears wash out a Word of it.
“What has happened has happened and you can’t change it.”
In trading and in life, we must always keep this at the forefront of our minds. Annoyances happen
every day, tragedy and loss will strike all of us at some point in life be it a
loss of a relationship, death of a loved one, financial struggles, and the list
is endless. So no matter what you do for
a living it is vital to keep this concept in your conscious mind.
every day, tragedy and loss will strike all of us at some point in life be it a
loss of a relationship, death of a loved one, financial struggles, and the list
is endless. So no matter what you do for
a living it is vital to keep this concept in your conscious mind.
Almost all Traders and Investors out there have felt the
anger and revenge that can well up inside when your trade goes south fast and
you lose money on the trade/investment.
It seems this anger and revenge can take control and subject you to
making more trading/investing errors that can add to more losses.
anger and revenge that can well up inside when your trade goes south fast and
you lose money on the trade/investment.
It seems this anger and revenge can take control and subject you to
making more trading/investing errors that can add to more losses.
This is exactly what is meant by that poem – the moving
finger has written your previous losing trade into the books – the FACT is that
you have lost and been stopped out on a trade.
finger has written your previous losing trade into the books – the FACT is that
you have lost and been stopped out on a trade.
But this is the key.
Your opinion is all that matters.
Your opinion is all that matters.
The fact is you lost on this trade/investment. But now that you acknowledge this fact, what
is your OPINION about what happened?
is your OPINION about what happened?
That, is the key to whether you take a step on the path to
success, or a step on the path to failure.
success, or a step on the path to failure.
Awareness is of utmost importance. You have to be on your toes at all times when
you are trading. Bad things can and do
happen. No one is immune to it. But bad things will happen to you more often
if you are careless or your opinion about what happened doesn’t serve you.
you are trading. Bad things can and do
happen. No one is immune to it. But bad things will happen to you more often
if you are careless or your opinion about what happened doesn’t serve you.
A split second of carelessness can change lives forever. I read about a high school kid who was
reaching down for a CD in his car and drifted off into the shoulder and killed
a man riding his bike on the shoulder of the road who had a wife and 2
children. No bad intent. As far as I can tell he was a good kid but
was simply careless for a few seconds.
reaching down for a CD in his car and drifted off into the shoulder and killed
a man riding his bike on the shoulder of the road who had a wife and 2
children. No bad intent. As far as I can tell he was a good kid but
was simply careless for a few seconds.
And now that poor kid, will have to live with what happened
for the rest of his life, and those 2 children will be without their father for
the balance of their lives.
for the rest of his life, and those 2 children will be without their father for
the balance of their lives.
Because of a couple of seconds of carelessness.
But the past can’t be changed. So we must utilize the concept of the “moving
finger.” All we can do is learn from it
and go forward and hopefully “do better.”
finger.” All we can do is learn from it
and go forward and hopefully “do better.”
In trading you have to learn your lessons. Maybe you took a massive loss on a trade or
lost a large portion of your account.
The GOOD thing is you finally shut it down and you now have a choice –
learn from it…or collapse into the death spiral of so many past failed traders
who didn’t understand this concept and allowed themselves to take on a very
detrimental opinion of themselves and what had transpired.
lost a large portion of your account.
The GOOD thing is you finally shut it down and you now have a choice –
learn from it…or collapse into the death spiral of so many past failed traders
who didn’t understand this concept and allowed themselves to take on a very
detrimental opinion of themselves and what had transpired.
It’s your choice. The only thing you cannot do is erase what
has happened. So when hardship or
setbacks come to you…and they will….stand back up, dust yourself off, analyze
what happened, take notes, and move forward vowing not to make the same mistake
again. Be aware, and not careless in
your trading/investing business at all times.
has happened. So when hardship or
setbacks come to you…and they will….stand back up, dust yourself off, analyze
what happened, take notes, and move forward vowing not to make the same mistake
again. Be aware, and not careless in
your trading/investing business at all times.
