Here’s an article by Edward Allen Toppel on trading psychology and the paradoxical nature of trading: “Looking For Money In All the Wrong Places?”
Trading is simple, but it isn’t easy. Seems contradictory, right? Simple may equal easy everywhere else, but in the trading and investing arenas these concepts are hardly synonymous. Why is that? Why do traders hold on to losers and take quick profits?
Cut your losers and let your winners ride – this is the rule. But many traders do just the opposite. Ever been your problem? Is it still? I ask this question in my seminars and inevitably almost everyone (at least the honest ones) admits that this is their biggest failing as a trader. Why? What keeps us from walking the talk? What’s your answer? [read the rest...]
