Promiscuity together with trading: admittedly non the near mutual of topics inwards trading psychology, but I retrieve it’s quite relevant.
Alvarez makes a proficient point: on of import matters inwards which nosotros experience commitment, at that topographic point is no promiscuity. If you’re committed to physical wellness together with beingness inwards peak conditioning, y’all won’t survive promiscuous inwards what y’all eat. If you’re committed to a marriage, y’all won’t survive sexually promiscuous. If you’re committed to career or a religious faith, y’all volition necessarily survive selective inwards what y’all pursue.
The occupation alongside promiscuity is that the pursuit of breadth allows for no tillage of depth. If I roam from 1 chore to but about other each year, I never prepare a career–and never accumulate a career’s worth of achievements. If I flit from 1 romantic human relationship to but about other each week, I volition never experience the depth of human relationship that comes from a lifelong commitment. Once nosotros brand a commitment to something, nosotros opt for selectivity. The pursuit of all things reflects a lack of commitment to anything.
It is mutual to attribute the breaking of trading rules to a lapse inwards discipline. Perhaps, however, those undisciplined occasions reverberate an absence of commitment. Look at it this way: if y’all developed your ain approach to trading; tested it well, historically together with inwards your ain experience; together with knew deep downwards that it possessed unique value, y’all would experience a flat of commitment to that approach. You would merchandise it consistently, non because y’all impose a dependent upon yourself, but because y’all believe inwards it deeply. An creative soul doesn’t flit from mode to style, 1 icon to the next. Why? Because underneath that mode is a vision–and that artistic vision expresses an emotional commitment.
When traders flit from 1 type of merchandise to another, their promiscuity reflects an absence of such artistry together with commitment. They receive got non establish their trading vision. Often, their ideas are borrowed from others together with non tested together with made their own. One to a greater extent than magazine entry or checklist volition no to a greater extent than assistance such traders than they would assistance the bored overeater. If y’all desire to consume healthy, y’all must survive committed to an ideal of physical conditioning. If y’all desire to merchandise healthy, your trading must survive connected to a greater purpose together with commitment.
I volition brand a bet:
If nosotros were to cutting the types of trades that nosotros receive got past times two-thirds together with focus alone on the 1 or ii that reverberate our greatest border inwards markets together with our greatest trading strengths–and if nosotros were to meaningfully increase the size/risk taken for each of those trades–our overall profitability together with risk-adjusted returns would ascension significantly.
In other words, if trading becomes an seem of a commitment to a detail approach that is ours, many of the problems of trading psychology melt away. In trading, every bit inwards whatever career, dedication is the near durable origin of discipline.
Further Reading: Solution-Focused Performance