Detached Attachment Brings Trading Success
Two steps to trading success: attach to a tested plan, detach from the outcome. Why objective persistence beats subjective discretion.
As simple as it seems, control over our own mind is the hardest thing to master. A lot has been written about it, but we thought we would simplify it. Here is the psychology of successful trading, broken down into two steps.
The two steps
- Attachment to a well-rounded and tested trading plan. It is amazing how we falter when asked to repeat a set of steps day in and day out. If, amid everything life throws at us, we can train the mind to follow a set plan, great windows of profitability tend to open up.
- Detachment from the outcome. Focus on the money and we hand ourselves over to greed and fear. Only when the heart loses its craving for money is it fully ready to follow a plan, and behold great outcomes.
Objective persistence is far better than subjective indulgence in the stock market. An objective plan brings clarity of thought. Objectivity makes it easy to trust as market dynamics change, and trust makes it easy to persist. With persistence, success is a step away. Even those who excel with subjective discretion more or less carry an objective plan in their mind.
