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Sunday 14 November 2010

Being able to deal with losing trades separates successful trader from ex-traders

Being able to handle you’re loss in a vital skill that can be learned, however this learning requires the trader to be brutally honest with one ’s self.  In my opinion we live in a blame society, where it is everybody else’s fault apart from the accuser. But may be it could be you not being able to maintain the proper mental discipline and psychological strength to follow the system and methodology that you have tied you’re self to by all cost otherwise it can lead to you being slain by the Song of the Siren 

Sirens and death

According to Ovid (Metamorphoses V, 551), the Sirens were the companions of young Persephone and were given wings by Demeter to search for Persephone when she was abducted. Their song is continually calling on Persephone. The term "siren song" refers to an appeal that is hard to resist but that, if heeded, will lead to a bad result.

Odysseus and the Sirens.
Odysseus was a legendary Greek king of Ithaca and the hero of Homer's epic poem the  Odyssey
He is most famous for the Ten eventful years he took to return home after the ten-year Trojan War and his famous Trojan Horse trick. 

Odysseus was curious as to what the Sirens sounded like, so, on Circe's advice, he had all his sailors plug their ears with Beeswax and tie him to the mast. He ordered his men to leave him tied tightly to the mast, no matter how much he would beg. When he heard their beautiful song, he ordered the sailors to untie him but they refused. When they had passed out of earshot, Odysseus demonstrated with his frowns to be released.#

Odysseus Sirens BM E440.jpgIcon Greek mythology Odysseus mast.jpg

The principle behind trading is to have more wining trades than losing one’s where you’re losing trades are kept very small and you’re winners larger than you’re loser there fore resulting on accumulative profits over time. FACT!!! The successful trader realises that in this game we are trying to stack probability in our favour over and above 65% risking an advisable 2% to 3% of one’s account stops should reflect this. And only moved to protect gains. If you’re about to get stopped out then so be it. Take the hit and move on it's just part of the game.


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