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TheNegotiator

Keeping Your Objectivity

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Objectivity is so important. Important for your current trade and important for your subsequent trades. Losing your objectivity during the day can occur for various reasons. You may get tired/hungry, get tunnel vision and fail to keep your discipline when a trade goes against you, the market does something unexpected, the market moves in an unusual way.

 

Some people can remain cool and collected at all times but don't seem to be able to. Are these guys some kind of trading gods? Are they just naturally suited to trading? Have they found out something that others don't know about? The holy grail perhaps? Nope. They have a plan which covers all aspects of trading. I know to some I might sound like a broken record, but it can make a huge difference. Knowing what to do and knowing it is a good course of action in general can make all the difference as to whether or not you actually do it.

 

Plus of course there's one BIG thing to trading a plan other than remaining calm and objective - you very quickly see where you're going wrong and can adapt the plan to work better.

 

Anyway, just a little reminder ;)

 

Happy trading!

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Hi, TheNegotiator,

 

Have a good day! It's nice to hear from you again. Another profound thinking to help people to have a better trade and life. You statement made me think of Dr. W. Edwards Deming, one of great giant I respect. Here is what he said.

 

"The prevailing style of management must undergo transformation. A system cannot understand itself. The transformation requires a view from outside. The aim of this chapter is to provide an outside view—a lens—that I call a system of profound knowledge. It provides a map of theory by which to understand the organizations that we work in.

 

"The first step is transformation of the individual. This transformation is discontinuous. It comes from understanding of the system of profound knowledge. The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people.

 

"Once the individual understands the system of profound knowledge, he will apply its principles in every kind of relationship with other people. He will have a basis for judgment of his own decisions and for transformation of the organizations that he belongs to. The individual, once transformed, will:

 

*Set an example;

*Be a good listener, but will not compromise;

*Continually teach other people; and

*Help people to pull away from their current practices and beliefs and move into the new philosophy without a feeling of guilt about the past."

 

Cheers,

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Objectivity is so important. Important for your current trade and important for your subsequent trades. Losing your objectivity during the day can occur for various reasons. You may get tired/hungry, get tunnel vision and fail to keep your discipline when a trade goes against you, the market does something unexpected, the market moves in an unusual way.

 

Some people can remain cool and collected at all times but don't seem to be able to. Are these guys some kind of trading gods? Are they just naturally suited to trading? Have they found out something that others don't know about? The holy grail perhaps? Nope. They have a plan which covers all aspects of trading. I know to some I might sound like a broken record, but it can make a huge difference. Knowing what to do and knowing it is a good course of action in general can make all the difference as to whether or not you actually do it.

 

Plus of course there's one BIG thing to trading a plan other than remaining calm and objective - you very quickly see where you're going wrong and can adapt the plan to work better.

 

Anyway, just a little reminder ;)

 

Happy trading!

 

there are times we have to let the dust to settle. sometimes things go different than we predict. knowing what to do and knowing what not to do make a huge difference.

 

and don't forget that the market will not be logical all the time...even if you are right, the market/instrument can go the opposite way for a long time...

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Most if not all of this has to do with maturity....and what comes WITH maturity is the ability to maintain perspective in the midst of a stressful environment.....mental health professionals characterize this as the ability to modulate emotions....

 

In a recent post, I offered a quote by Dr. Amanda Morris at the National Institute of Mental Health (USA)

 

http://www.traderslaboratory.com/forums/psychology/14410-saboteur-mind.html

 

Post #7

 

Seems to me that this concept (how humans learn to manage and regulate emotion) is at the core of our success (or lack thereof) not only in trading, but in many areas of our existence.. because to the extent that we learn to regulate our emotional response to the events of our lives, we may find that we make better choices

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