Continue reading...Emotional Intelligence and the Trader
Why is it that 90 percent of traders who trade the markets fulltime fail to earn an adequate return even when using systems claiming 70 percent accuracy? Perhaps it is because traders do not recognize the importance of the Paramouncy Principle.
The Paramouncy Principle suggests that you are the most important variable in the trading equation. Not you, the dispassionate arbiter of
technical and fundamental analysis, but also you, the thinking, feeling, sentient being with all your human foibles, hopes and aspirations. Most traders lose money because they do not have an understanding of the markets or of themselves.
They trade without method, strategy or discipline. They fall prey to powerful emotion that leads to impulsivity and behaviors more akin to gambling than to genuine understanding. They give in to perceptual biases that lead to false conclusions and inappropriate actions.
Most Traders Focus on Method
A wide educational...
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