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Location: Columbus, Ohio, United States

Saturday, July 01, 2006

trading under bad circumstances

Trading is not an easy business. Losses happen often when trading. It is required to make trade after trade then get yourself up after each setback. However, the winning trader keeps it all in perspective.

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The only thing which matters, ultimately, is the big picture. These are the profits made across a series of trades. But getting up after a setback is often easier said than done. When getting beat down by a series of setbacks, it is hard to get up again. It's easy to begin mulling over what we did wrong. It's easy to feel sorry for yourself.

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Suddenly, our failures seem to be at the forefront. Our successes all seem like flukes which are of little relevance. Instead of remembering our many wins, we remember every single loss. Possibly, we think we may never make a winning trade again.

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With trading being so challenging, it's not difficult to fall prey to disappointment. Unless you get up and start fighting back, you may end up feeling so bad it stagnates you. You aren't looking for profitable opportunities, which means no profit. Or, you make so many trading errors, you dig yourself into a financial hole from which you can't recover.

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