Greed and Fear - Daily trading signals based on mathematics and software, no opinion, no emotion, no ego.

electronic quote board1Often times, traders feel that the market is full of opponents called 'they'. Traders have the feeling that 'they' (these opponents) are out there to get them. 'They' are pushing the market higher after which 'they' will let it drop. 'They' will hit your stop loss and then 'they' will steal your money. Usually 'they' are the banks, the big funds that can really move the markets. In the other words: The Evil. And what 'they' are trying to do is always so obvious, it's almost a crime.

Never ever is it that these frustrated traders wonder why not trade along with 'them' and make money instead of fighting the powerfull moves. If it's all that obvious, it can't be hard to make profitable trades wouldn't you think? But making profitable trades is hard, very hard.

In reality, there is no 'they', 'them', 'The Evil'. And the market? It couldn't care less about you, your opinion, who you are, if you deserve a profit or not, if you're a nice person who worked hard, it doesn't discuss with you which way to go, it will only crush you if you get in the way. The market is only telling you that you are wrong, wrong and wrong again. You need to accept failure without discussion, adjust to the new circumstances and change your opinion in an instance. A human ego hates failure, hates to change opinions so quickly. A good trader has no ego when trading. I have read several books written by Dr. Brett Steenbarger, and he can really explain this kind of thinking and how to deal with it. Look in my bookstore.

When you are trading, you are not fighting with anybody out there, and nobody cares about you, and your opinion. You are only fighting your own ego. Accept failure, learn from it, and move on.

Recommended reading:

The Evil at work: Bad economic data, but the market is going up!?

Outsmart your neighbor: What do you think is your neighbor thinking that you think that he is thinking?

Feed your brain with things you disagree with: Don't be nice to your ego