Trading In The Zone - Lure & dangers Of Trading

Question 1

Why do many mess up trading

Answer 1

They get in for the wrong reasons (for glory and acclaim etc)

Question 2

Why are the unlimited possibilities of the market a challenge

Answer 2

We have total freedom to go after as many opportunities to make money, this is corrupting for many who don’t have fearless frameworks and disciplines

Power corrupts, absolute power corrupts absolutely

Question 3

Without the right mental structure you can become a passive loser

Answer 3

Once you’re losing you don’t have to do anything to keep on losing, you can just sit there

Question 4

Everyone has a subtle need to reject rules as it seems to limit our freedom, why is this an issue?

Answer 4

We just have rules when we’re trading to be consistently successful

Years of denied impulses made us hate rules deep down - we must ensure we implement clear rules that deal with natural impulses that could trip us up

Question 5

To create consistency in trading what hard reality must we accept (begins with R)

Answer 5

The results are totally 100% your responsibility

Question 6

Randomness (unstructured trading) is dangerous especially when winning, why?

Answer 6

trading outside a system and winning tells us this works, when we lose we just think it’s because we were missing “that one variable” but otherwise our system works

The Rat Trap (rationalisation trap)

Question 7

Many traders do the research, then ignore trades they decide on and….what

Answer 7

Get a tip from someone and not execute any of their trades.

Why?

To avoid responsibility of putting our ideas in the line for judgement

This is randomness trading

Question 8

Rewards from randomness unstructured trading are….(begins with A)

Answer 8

Addictive. Dopamine rewards from random trading is very additive and dangerous

Question 9

Is the stock market require external or internal controls

Answer 9

Society gives us external controls, social contract

Traders must have internal controls