Fight Within

Fight Within Newcomers to trading often assume that successful trading requires the very best tools, the best filters, the best systems, etc. While these are important components, the number one barrier to success is the internal struggle one faces, especially when dealing with financial matters. First, there is the emotional component to trading. While we all like to throw around platitudes like “Emotions should never be a part of it,” in actual practice, it is very difficult to not be upset with a badly losing trade. It is equally difficult to not be exhilarated over a big win. Second, there is the natural inclination for any human being to always be right. No one wants to be wrong about anything, which is a part of nature---to be wrong is to (possibly) not survive. This natural instinct to be right at “all costs” can serve as a continuous detriment to trading. Hence, learning how to be “wrong” is a key component of successful trading. Third, there are complications of [what I would call] hidden intentions and goals that are contrary to real success. The best way to illustrate this is to examine some common reasons why some people fail with their own business. While most people attribute business failures to such things as under funding, competition, economic conditions, etc., when you take a closer look, many of these businesses fail due to the owners having other fish to fry. For example, let’s say that the intention of starting a new business was to make ongoing extra cash. If this were the true, main goal, all of your business decisions would be made on that basis: You would only engage in activities that were profitable. Now let’s say your intention for a business was something else, say it was to become “well known and famous in the industry.” If this were the primary goal, you would not necessarily make profitable decisions. Instead, you base all of your decisions on public relations, you would likely blow a lot of money on advertising (but not with profits in mind), or do lots of trade, none of which are necessarily geared to making a profit. You may or may not achieve your goal of becoming well known and famous, but you would probably go out of business if none of your decisions led to a profitable venture. This might sound like an exaggeration, but I have seen this exact scenario several times in my life! And, so it goes with trading, and for this, it is imperative that you begin with some sincere introspection as to what your primary purpose is for entering the world of stocks. If it is anything other than making consistent profits, you will likely fail. www.Swingstocktraders.com