Too much or too little?
Fight or Flight?
Risk does funny things to human beings. We’re hard-wired for survival yet love seeking thrills. I mean, I like risk but you wouldn’t get me climbing mountains without a rope…
In the trading world, that means some risk is enjoyable, it gives us satisfaction and to some extent excitement. (Which is ok btw)
But too much risk and it flips a switch. Fight or flight. Close the trade or add more.
Each person has a different risk tolerance in the markets, and whilst that does increase the longer you are exposed to it, it’s something we always have to manage.
Today, think about the risk you are taking. Do you truly accept it? Will you accept a maximum stop out if it happens? If you get stopped on your first trade, will you take the second without hesitation or thought?
Trade with the level of risk you are comfortable with. That will increase as your confidence and account grow. Be careful not to tip yourself into the fight or flight mode. Because if you do, you are doomed. The lizard brain takes over and that brain is a notoriously bad trader!
Give yourself a fighting chance, trade small, get your method dialled in and THEN look at trading more size. No rush.
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Setting and Achieving Goals
Epictetus once asked, “How long are you going to wait before you demand the best for yourself?”
Achieving our goals requires discipline, self-control, and endurance. These qualities are central to Stoicism, a philosophy that emphasises self-improvement and personal growth.
Check out this interesting link from the Daily Stoic around goal setting.