The world of trading is one of high stakes and high-risk activity. The goal is, ostensibly, financial gain. Give up that goal, and you gain the freedom to genuinely listen to the sounds of the marketplace and to
be able to read the movement of stock prices in a way that enables you to increase your probability of success.
Reading the market's direction and the directions of specific stocks is essential to trading success. It is like the childhood game of musical chairs. In that game, you have to time your move so that you do not jump for a chair before the music has stopped; you also don't want to linger too long after the music stops so that there are no seats left. This is the trader's dilemma as well. The more skilled you are, the more patience you have, the longer you can stay in as the stock rises or falls before you act. You stay in longer, and therefore maximize your profits. However, you do not stay in so long that, by tryin to trade
vou end uo beine stuck on the downturn and caught holding declining stock in hope that it will turn around. The same goes for being able to minimize your losses. Rather than hoping and praying and rationalizing your hesitation by convincing yourself that the stock will eventually turn around, you cut your losses instead.You have to abandon energy-draining behavior—impulsivene
you must learn the appropriate role of money. Paradoxically, the greater the amount of money, the more you must renounce your focus on it
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