October 18, 2018

Why your upbringing can work against you in the stock market

We're brought up with a huge focus on being right or wrong. 

At school we learn. We are then tested on that learning with exams and assignments. This continues all the way through our education – primary school, high school and college. Right and wrong: it's ingrained in us from the word go.

But when we enter the trading arena, being right or wrong has nothing to do with being a successful trader and making profits. If you believe that the most important aspect of successful trading is being correct, you are making a very big mistake.

You can be a highly profitable trader and lose more often than not – indeed, some of the world's top traders lose more often than not.

Unfortunately most people have this belief that in order to be profitable you must be right. This line of thinking for an aspiring trader is very, very wrong.

To conclude, don't be obsessed with being correct. Expect half your trades to fail. Money is made not because of the indicator but by your ability to keep losses small and letting profits run.

Being right has nothing to do with making money.

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