I came across this trading journal and I personally felt it deserves much more attention for aspiring traders to fully understand the type of psychological condition you must be ready for.
“As I sit back and reflect on my journey as a trader, where I was and where I am today, I can clearly point out the things I didn’t get right at the time. For instance, one of the fundamental lessons I’ve learned and come to accept is that control in the markets is an illusion.
The analyses, all they tell you is that something is more likely to happen. And if you put all your hopes, dreams, and bet the farm on these, you are bound to be disappointed.
So, we don’t really know how things will turn out.
And it’s OK.
Not knowing how things will turn out on a moment to moment basis can be scary. I’m not going to lie. Especially when money is on the line.
But not knowing is what makes being a trader more amazing than working a “regular” job with a regular paycheck. We take risks, we stumble, we don’t know what is going to happen, we not only venture into the unknown … we dive in, headfirst.
It’s exciting! Taking risks and stepping outside of our comfort zone is the essence of living if you think about it — and we, traders, are full into it!
Furthermore, (and that’s the best part ) you don’t need to know what will happen next to make money. When I thoroughly understood this through my own experiences, I wasn’t resisting anymore. I began placing and managing my trades more easefully.
“Uncertainty is an uncomfortable position. But certainty is an absurd one.
I do not trade for investing purposes and a mere return on capital. I trade for a living! In hindsight, for a long time, I have made trading such a difficult and consuming endeavour for me by my mere craving of certainty.
The wanting and needing my trades to turn out a certain way caused me a great deal of anxiety and frustration.
There’s a simple way to reduce the anxiety and it’s only years later that I discovered its importance: it’s called acceptance – of the unknown.
What is acceptance? It’s embracing, and being at peace with something.
Embracing uncertainty can be liberating … and it can engineer a couple of advantages.
By accepting, we automatically decrease anxiety. What happens when you have less anxiety? Well, you’re happier. You are happier when you place and manage your trades. You feel more at ease and you’re cool with how things are going – however they are. You are also less desperate. You don’t need things to turn out a certain way — you don’t need this one trade to work. You do your best to make it happen by placing your trade when you need to and managing it according to your plan, but you’re cool even if it doesn’t turn out to be a winner. You know you have a proven methodology anyways… the numbers will even out, if not today, tomorrow. If not tomorrow, the day after. If not this week, the next one…
We become less tied to one trade. When we put our hopes and dreams on one trade, it becomes a single point of failure. Not a great idea, don’t you think? Instead, acceptance opens up our perspective and we become more comfortable diversifying our risk because we know that we don’t know. And no outcome really messes us up because there is always something to be extracted from it — if it’s not profits, it’s surely wisedom or lessons. So we flow!
we become more honest with ourselves. Admitting to ourselves that we don’t know is much more honest than thinking, hoping, and wishing things would turn out the way we want. Honesty is primordial because if we are going to be proficient traders, we should always strive for a clear and objective assessment of the situation. And there is no objectivity in thinking that we can control the markets or trade outcomes.
We begin spending less time deciphering the charts and reading in between the lines. Not knowing means you realize that too much analysis is useless, and actually a waste of your time. Clearly you have a process and an objective set of rules built into a proven methodology. You know you have devised this methodology by accumulating the evidence that validates its efficiency. When you stack up the evidence through back testing, if the results are conclusive, you know that you’re in possession of an objective and definable edge. That’s all you need to know. Acceptance makes you spend less time worrying, and more time executing.”
the above article is an extract of http://tradingcomposure.com/accepting-market-uncertainty-and-its-advantages/
[Free Monthly Seminar!] Registration for the next Monthly Universal Principles of Successful Trading & Market Outlook Seminar for 18th February Thursday Evening is now open! Register Now!