As I recently quoted Martin Schwartz in my Going For Gold article I reread the quotes passage at the end of the book. He has quite a few interesting quotes related to ego and psychology. Keep in mind he is a day trader. Even if you are not day trading I always felt learning from day traders is a great way to improve your trading skills. That’s because as a day trader without discipline there is no way you are going to be successful. Just apply the rules to the time frame you are trading.
Martin Schwartz: ‘The Pit Bull’s Guide To Successful Trading’. Page 287:
I’ve said it before, and I’m going to say it again, because it cannot be overemphasized: the most important change in my trading career occurred when I learned to divorce my ego from the trade. Trading is a psychological game. Most people think that they’re playing against the market, but the market doesn’t care. You’re really playing against yourself. You have to stop trying to will things to happen in order to prove that you’re right. Listen only to what the market is telling you now. Forget what you thought it was telling you five minutes ago. The sole objective of trading is not to prove you’re right, but to hear the cash register ring.
Here is another timeless piece of advice:
‘Worst Fears Not Realized’
I have stated before that whenever your worst fears are not realized about a trade and the market is letting you out better than you expected, it is not just luck. Rather your position is most likely correct and should not only be held but perhaps added to.
Add to your winning positions. Reduce your losing positions.