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The 90/10 Principle
- Thread starter llaterallus
- Start date
Quote from bestforextrader:
It really is a great article but people don't understand that it is a lot easier said than done. When placed in the situation you don't think of the 90/10 rule- only hind sight allows you to do that.
Its very tough but I know for a fact that I think of it when I am put in the situation !!
Just in the last 6 days with my trading I have had to implement this type of mindset it while my problems were happening. And it has made it much easier to see the BIG picture and the problems have been so much easier to get over.
It really separates the average people from the true champions.
I have absolutely and positively NO doubt in my mind about this !!!!
Ari Kiev's "The Psychology of Risk" talks about this kind of thing. What he recommends (and I've put it to good use, too) is: keep a journal of your emotions during trading, including the time of day when you felt what you did.
Since you can't always experience a feeling without the emotional hit you can at least keep track of how you feel throughout the day. The benefit is that you will see how short-lived your emotions are. You might feel panicky and in a cold sweat at 11:00 AM but by 11:25 it's all gone. Once you know what to expect from your body you will realize that all emotions are a passing phenomenon and no matter how bad you may be feeling now it won't last for too long. It's useful to know how long to expect before you have a clear head again.
opm8
Since you can't always experience a feeling without the emotional hit you can at least keep track of how you feel throughout the day. The benefit is that you will see how short-lived your emotions are. You might feel panicky and in a cold sweat at 11:00 AM but by 11:25 it's all gone. Once you know what to expect from your body you will realize that all emotions are a passing phenomenon and no matter how bad you may be feeling now it won't last for too long. It's useful to know how long to expect before you have a clear head again.
opm8
Quote from opm8:
Ari Kiev's "The Psychology of Risk" talks about this kind of thing. What he recommends (and I've put it to good use, too) is: keep a journal of your emotions during trading, including the time of day when you felt what you did.
Since you can't always experience a feeling without the emotional hit you can at least keep track of how you feel throughout the day. The benefit is that you will see how short-lived your emotions are. You might feel panicky and in a cold sweat at 11:00 AM but by 11:25 it's all gone. Once you know what to expect from your body you will realize that all emotions are a passing phenomenon and no matter how bad you may be feeling now it won't last for too long. It's useful to know how long to expect before you have a clear head again.
opm8
Excellent point as well as advice !!!