This famous cartoon reveals the biggest problem with trading profits.
It is a clip from an old cartoon series called Pogo. Sadly the creator is dead so no more trading insights!
But his point is more powerful than you can possibly imagine.
When it comes to trading, we are the enemy.
No, it is not the market or the brokers picking off our stops or the Big Boys manipulating the markets. It's not even finding profitable trading techniques.
It is us.
The human mind is not designed for trading. Let me give an example.
We are trained from childhood to try to never make mistakes. As a child, we get punished for punching our little sister. In school, we fail when we get answers wrong. In a job, we get fired if we make too many mistakes. In church, we go to hell if we do the wrong things.
A constant drumbeat of telling us not to make mistakes.
So here is the problem.
In trading, people think a losing trade is a mistake. They think a profit means they didn't make a mistake and did something right.
Both statements are wrong!
A losing trade means you lost money not make a mistake. A winning trade means you made money not did something right.
You see, trading is probabilistic not absolute. So that means that you have to look at your results after 100 trades not trade by trade.
So here is the problem. People will often hang onto losers waaaay too long because they don't want to admit they made a mistake. But if they stop thinking of a losing trade as a mistake then they will get out quicker and have a smaller loss.
On the other hand, people often take profits too quickly so they never get the big winner. They constantly take quick profits to prove they are right but that just means they are treading water not making money. They want to be right, not make money.
Yes, everybody says they want to make money but most people want to be right more than make money.
The Pogo cartoon pinpoints the problem that most traders have: he is us.
I've put together a Mentoring Intensive program that can change that in you. It can take you out of the loser category and put you in the winner category. This is intensive mentoring to transform your trading career. Really.
And it's all about you. Everyone who signs up is treated completely differently. In fact, the first session is only about me and you having an honest conversation about what you want to achieve and what is stopping you from achieving your goal. I then put together a Profit Plan designed just for you.
Click here to learn more and apply.Now!
Good trading,
Courtney Smith
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