Lesson 7: lack of skill
The trader is generally not aware that the trading environment is different from all other environments. Trading has the appearance of something that should be easy to do coupled with the possibility of making vast amounts of Money in a relatively short period of time.
The trader will thus create some inflated expectation of success. Adherence to these inflated expectation without the appropriate skills equals disappointment which equals pain which equals psychological damage which equals fear. Fear diminishes the trader ability to be objective, execute his trades, or learn about the fundermental nature of the markets.
Important note : the markets have no invested interest in supporting anyone's illusions about himself. If a trader is feeling fearful, he can try to cover it up all he wants but his trading results will readily reflect his true feelings.
Next: do not limit your beliefs
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