It is getting me somewhere. I KNOW how to reach the profit goal, but the KNOWING part is only one part of good trading - the DOING the knowing is what separates a consistently profitable trader.
The journey, as usual, has been more important than the goal.
I will keep doing what I've been doing and I hope to... wait.... the whole foundation of good trading is sublimating the role of the 'I' - or the Self 1 as it is also called.
I am currently reading 'The Inner Game of Tennis' - it seems very translatable to improving trading performance, and recommend it as a phenomenal book which will be useful when you are actually 'hands on', posied to take a trade and when managing a trade - its usefulness it DIRECT.
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I posted this here, but wanted to stick it here since this is my journal.
I am currently reading 'The Inner Game of Tennis' and wanted to share an interesting point about protecting yourself from yourself!
A trader tells himself: 'Come on Tom, now HOLD this trade and do not take an early profit'.
Or 'You clumsy oaf, you loser, why EVER did you move your stop? Why did you make this big hole in your account when the Daily Loss Limit was in YOUR control?"
Who is telling whom, and what?
'Tm talking to myself," say most people.
But just who is this "I" and who the "myself"?
Obviously, the "I" and the "myself" are separate entities or there would be no conversation, so one could say that within each person there are two "selves."
One, the "I," seems to give instructions; the other, "myself," seems to perform the action. Then "I" returns with
an evaluation of the action. For clarity let's call the "teller" Self 1 and the "doer" Self 2.
Within each person the kind of relationship that exists between Self 1 and Self 2 is the prime factor in determining one's ability to translate his knowledge of technique into effective action. In other words, the key to better tennis-or better anything-lies in improving the relationship between the conscious teller, Self 1, and the unconscious, automatic doer, Self 2.
Imagine that instead of being parts of the same person, Self 1 (teller) and Self 2 (doer) are two separate persons.
The trader is trying to HOLD till his profit target and NOT take a small win.
"Okay, dammit, keep your stupid hand off that mouse," he orders. Then as the trade begins to falter and pullback, Self 1 reminds Self 2, "Hands off! Sit! Hands off! Sit! Hands off! Sit!" Monotonous?
Think how Self 2 must feel! It seems as though Self 1 doesn't think Self 2 hears well, or has a short memory, or is stupid.
The truth is, of course, that Self 2, which includes the unconscious mind and nervous system, hears everything, never forgets anything, and is anything but stupid. He knows forever what to do to manage the trade properly, again. That's his nature.
And what's going on during the trade itself? If you look closely at the face of the person, you will see that his cheek muscles are tightening and his lips are pursed in effort and attempted concentration.
But face muscles aren't required to manage a trade, nor do they help concentration. Who's initiating that effort? Self 1, of course.
Back to the trader. His muscles tense in over-effort, and suddenly he has clicked the mouse button and is out of the trade.
But why? He's supposed to be the teller, not the doer, but it seems he doesn't really trust 2 to do the job or else he wouldn't have to do all the work himself. This is the nub of the problem: Self 1 does not trust Self 2, even though the unconscious, automatic self is extremely competent.
"You bum, you'll never learn how to trade well."
Self 1 complains. By thinking too much and trying too hard, Self 1 has produced tension and muscle conflict in the body. He is responsible for the error, but he heaps the blame on Self 2 and then, by condemning it further, undermines his own confidence in Self 2. As a result the trading grows worse and frustration builds.
Now sit back and think about all this for a moment.
And then think if 'trying hard' is everybody's problem, yours and mine. Now think of 'Effortless effort'.
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