When it comes to trading the patterns play a huge role in reaping the reward. The reward for the risk is what each trader hopes for. Sometimes the risk shows its part by showing us the loss. But loss is just a part of the game. Whenever there occurs a loss we tend to go in full revenge mode burning all the rest of the money. We know that is a wrong approach, but we do it frequently. The reason is we don’t like being a loser. At least we need the money we put in. Forget about the profit and focus on the investment. But that is wrong and dangerous. Because markets work against psychology. An emotionally weak person always has a weak portfolio and a weak profit and loss statement. When you become a person with a rigid mentality and have the patience for the right time execution, then it is very much rewarding. That is why when we a good trader he is patient and well disciplined. Discipline is necessary since money is involved. An indisciplined person keeps liability more than an asset. He does what he thinks is right for him without proper knowledge.
Genuine conviction is invariably born from firsthand experience. This is because, innately, our belief systems are wired to accept anything that can be perceived through our sensory experiences, a trait that evolved during our ancestral hunting epochs. Once we acquire such direct experiences, no further evidence is required to cement our belief. These experiences thus become the compass by which we navigate our existence. Hence, the optimum method of learning is through experimentation and introspection, for knowledge acquired in this manner becomes deeply embedded within our psyche, imparting indispensable lessons for personal development and growth. Predominantly, our learning derives from the direct experiences of others who possess a profound understanding and apply this wisdom to enhance their lives. Regrettably, we often fail to leverage this wealth of knowledge to our own advantage.
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