Humilty, Ego and a Lesson Learned

[ebbnflow]

Here's a guy who has learned his lesson about trading the hard way. At least we hope so! :D

My Best Trade (http://www.tradingmarkets.com/.site/community/articles/best_trade/My-best-trade-in-2006.cfm)

[airlift]

Here's a guy who has learned his lesson about trading the hard way. At least we hope so! :D

My Best Trade (http://www.tradingmarkets.com/.site/community/articles/best_trade/My-best-trade-in-2006.cfm)

Ebbnflow,

This is quite a sobering article! Thank you. The markets will do their best to surprise and confound us. That is why a clear head with a humble attitude is important. A lot of learning, caution and a humble attitude can go a long way in avoiding humiliation! Best wishes!

[tsptalk]

Good read. The line, “Screw Ego, Making money is more important” is so true. I have found that my biggest losses, whether in stock trades, poker, TSP, etc., all came right after I boasted about money I've made. Once you introduce your ego into a transaction, everything changes.

That's what makes posting our accounts here so difficult but it has always been important to me to post every move, win or lose, because it is a humbling experience. I'm sure many of you have now had that experience.

It took me a while to learn, but I now try my best to leave my ego out of any financial endeavor. Easier said than done. Sponsor said it - Be humble.

This would be a good thread for the Psychology of Trading (http://www.tsptalk.com/mb/forumdisplay.php?f=31) forum. When this site first opened I'll bet many of the newbies didn't think they had a need for a Psychology of Trading (http://www.tsptalk.com/mb/forumdisplay.php?f=31) thread. But the more experienced you get, the more you realize just how important that is. It may be the most important element of trading (not so much investing.)

[sugarandspice]

I have gone on "tilt" many times in my lifetime. I think everyone can relate to that article. And Tom, I'm sure there is an added pressure on you because you probably have many followers that move when you move. That is a pressure I wouldn't want to know.

[tsptalk]

Pressure, yes. That is why I try to always be modest when things are going well, because I know things could change very quickly. I couldn't have done this site 15 years ago. I didn't have the character to put aside my ego handling the wins (gains) and losses.

[Bullishreturn]

Great, great article.

Makes me want to look at my portfoio, which for the last three months I've KNOWN was going to bounce back to new highs. And here I sit, down 10K in three months, on just two stocks.

I'm not smart enough to trade options. Or perhaps it's because I've known high flyers who bet the farm on options trading, only lose it all. No, I managed to move 5K up to 42K in a year, and now am sitting at 32K in "play money", waiting for my two "beauty stocks" to turn around. Fine companies, with a fine future ahead. They HAVE to turn around. I just KNOW they are going to turn around.

Hmmmm......

I'll have to go take a fresh look at them in the morning.

Yes, that was a great article.

[tsptalk]

I'm not smart enough to trade options.
Sounds like you are smart enough not to. :)
I've lost a lot of money over the years trying to trade those buggers.

[fabijo]

Great article. I just started trading and investing earlier this year. Luckily, May and June tore me apart. I've still got plenty of years ahead of me (I hope) and it was good to learn that lesson in the beginning.