HERE’S HOW YOUR EGO MAKES YOU A HORRIBLE TRADER
There are two types of traders. Those that are humble; and those that will be humbled!
You may not know this already, but stubbornness is a trait that stems from a stubborn ego. It makes you think you should always be right. As a trader, this will cause you to allow a losing trade run beyond your initial set-up and stop-loss, simply because you’re not willing to take “yet another loss”.
On the other hand, your ego will stop you from taking profit in a winning trade just because you’ve preconceived a target where you must take profit. This is usually borne out of a previous losing trade. The outcome of such trade is often negative.
Sometimes, through your analysis, you establish a particular trend the market is expected to follow –either bearish or bullish and stick to it even when it’s clear the market isn’t obeying your rules. You’ll stand a better chance at successful trading when you listen to the market and not tend to have an opinion about where it should go instead.
There are so many bad things an ego could do to your trading. One good way to escape from it is to have some other thing you do that distracts you from the market. Hanging out with friends, family and having a good laugh now and then will help you keep a good attitude even when losing.
Learn to allow the market to decide its way and then react. You’ll become a better trader when you learn to wait on the sidelines and react, instead of trying to predict every market move.
Miracle Nwokwu