I have friends of all walks and sometimes do the same course of business. What I will share with you will be a lesson for all of us, including me. In any business we undertake, as far as possible please do not mixed it with emotion and ego. Because this 2 attitudes have no eyes and will take you blindly into unknown or known territories that will spell disaster.
One of my trading friend in the forex trading business have the 2 attitudes, which until today never made him a good forex trader. He keep losing on most trades. Whenever he make money on a particular day(s), he will certainly loss it the same week.
I have reminded him and continually teach him the best way of doing trades. In any trades, no matters it is forex, stocks, commodities, energy, precious metals or the similar financial instruments we must do it systematically. Sometime we have to create the system to suit our own personal trading style or type and the risk exposure we willing to take. A good trader is not about making the millions. A good trader is all about not to loss the trade.
Whenever I keep reminding him of this, he always make ways of his emotion and ego to trade. Today I observe his analytical trading approach. Last Monday I remind him to take the trade by following the market trend and never trade against the market. But today to my surprise he continually move against the market and enter the market by his emotion to catch the wave. In trading with limited equity strength, never try to catch the big wave. It is better to follow the wave. Catching the big wave can be fatal, with the unexpected current it will drown you. This is emotion of GREED and to get RICH quick.
Eventually he almost drown losing most of his profit the past week. Then he call me and blame the trading platform provider of being lousy and unfriendly. I try to remind him about the trading system I mention to him a few days ago, but he insist his analysis is correct and his trading style not the same as me. This is EGO.
As you can see, emotion and ego will never make you a successful trader nor a business person. Emotion and ego never have eyes nor does it learn the feeling of pain and guilt. Emotion and ego will secluded you from hearing any opinion. However, it can bring a person closer to blink of a disaster. It will make a hero to be a loser!
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