Conceit - a trader's worst enemy

Friday 10 April 2009

Among the various problems faced by the trader when trading in the forex, there is the problem of arrogance. It appears that when a person takes any action one way, it is very difficult to switch to another if necessary. The difficulty is that, privyknuv to something a good reading of this, people think that it not be difficult to quickly and successfully pereuchitsya and learn another thing, especially if a man think that it is not very different that in which he very well understands.
As an example, deliver the skill of driving, as well as in trade, too, need to acquire skills that «automatically» to follow the system. It is honed action makes a successful trading.
So what is going on Driving a car? First, people act slowly and carefully, trying to carefully monitor every detail. With experience, he developed driving skills, that is now a man does not need the stress completely for all to follow, many of the actions carried out by «automatically».
Compare the process of driving to the sale. In trading the same way at first is the accumulation of experience, then move to the «Automatic» Implementation of most action.
But sometimes such moments come when you need to change strategy, because it is most consistent with a sudden come to change the market. When such moments, you'll need as soon as possible to adjust and learn to use a new strategy, that trade was good. At first glance, it seems that it's very easy and people do not put sufficient effort to re-learn a new strategy because they believe that if successfully mastered the previous, it does learn quickly and easily .... The problem lies in that all think that way.
Now I will try to prove that it is not so ...
Consider the example of driving a car. Consider a situation where people learned to drive a car with automatic transmission, and used this skill for 10 years. Maybe he needs to learn to drive a car with manual gearbox .... Even despite the fact that, in principle, a person can drive a car, he will have many difficulties. Man is constantly mess in the action as it takes over the top arrogance .... The old method will always be reminded of, as a person would be a great desire to do everything as before. On the most cautious people sometimes forget, but it is fraught with bad consequences ...
To effectively learn a new method, you need to begin to cease to use the old way, and then learn new ways. We need to re-start training and do not expect that because you very well know how to use the old way, you can easily learn a new one. Pereuchivatsya sometimes more difficult than starting from the beginning, because it is very difficult to change old habits.

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