Seven Habits of Ineffective Traders
Ken Wolff has written an excellent piece on why many traders wash out. (You may want to save that locally before Yahoo expires it.) Here are the seven reasons, the article goes into more detail on each one:
When people won’t do their own homework.
When people can’t explain their reasoning for a trade.
When people make things more complicated than they need to be.
When people enter a trade for a good reason, then lose their nerve and exit too soon.
When people hesitate, or follow others, and enter a trade too late.
When people will not contemplate the real reasons for their failures.
A defeatist attitude, especially in me.
I had to pull out this section from #5, …
tagged: Ken-Wolff, psychology and Trading_Wisdom
