Monday, December 3, 2007

Fear of missing out

This interview, perhaps one of the best I've ever heard in terms of hitting home exactly what trading really is about on the mental level while actually trading.

Best analogies to trading came from soccer and baseball.

The average time held in a soccer game for a player was less than 3 minutes, out of a ninety minute game!

In baseball a right fielder, perhaps they only touch the ball twice or three times in two hours!

How many times in 6 plus hours do we "touch the ball" when we ought to be waiting for our proven setup?

I've stripped the horizontal levels away from my charts hundreds of times and always get caught  up in a fantasy when looking at a particularly sweet day of trading where all the oscillator signals went.

Invariably I ignore the levels on the next trade and the fantasy crumbles as the previously perfect signal gets blown and price screams up to the anticipated level.  reality.

"{fear of missing out} leads to more trading losses than anything else" Hirschhorn hits it home in a way I haven't heard in a long long time.

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