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*****No matter where you are on your investment plans, it is important to make a note to yourself about illusions. Illusions occur to support our view of things as we wish to see them but not as they actually are. We are all prone to illusions because we are successful liars to ourselves.
Please don't mistake my thoughts to be negative. Illusions help us to see the positive while hiding the negative so they are a two edged sword. They are part of "hope" therefore often necessary to get us through our day. Most often a daily routine. Trick is to be able to balance them and not allow them to rule our lives.
When they become predominant is when we tend to go off course and maybe even off a ledge, so keep your dreams and illusions simply clear.
In trading what puts us often into an illusion is when we get lost in the possibilities. If we dress our charts with too many indicators, we don't see clear movement of the patterns because we see too many possible outcomes. When we second guess ourselves about the satisfactory outcome of our trades, we get lost in illusions. Being lost in illusions is when we tend to "overthink" or even "underthink" a trade. When a trade hits a target too easily an illusion may run away with us that the "sky's the limit". Or if a trade turns slightly against us and/or near our stop we may second guess our plan and quickly exit before our planned trade finishes. In either case we don't trade our plan therefore allowing the illusion to rule our actions.
Besides alerts, what helps me is to keep my ledger and a post it note for reminders in plain visible sight. It helps me to remember my original plan and thinking, as it keeps reminding me of my targets, so I can view the possibilities without getting lost in them. Remember illusions are not magician tricks in trading; amusing at best as entertainment, but in real life they can also be dangerous sideshows.
The ponies run, the girls are young,
The odds are there to beat.
You win a while, and then it’s done –
Your little winning streak.
And summoned now to deal
With your invincible defeat,
You live your life as if it’s real,
A Thousand Kisses Deep.
A Thousand Kisses Deep - Leonard Cohen (lyrics)
Happy Trading, Living and Dancing
Anni
The next watch coming soon
©DayTrading with Anni 2007 - 2013 All Rights Reserved
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