When you think of trading, you are probably thinking of a very high octane way of doing business, and this is mostly due to the reason that trading is indeed generally approached in this manner. Honesty in trading is a concept that is misunderstood because it assumes that you are talking about the ethics of business, but this isn’t quite the case at all. In truth, honesty in trading means being honest with yourself. It means using your track record to figure out if you have actually been doing a good job, or if you feel like you are slipping up too often and you need to take care of yourself in a much more profound way all in all.
A common flaw among a wide variety of traders out there is that they start to assume that they are invincible. This assumption comes from them feeling like they are the only ones making certain decisions. The full article is going to tell you more, but for the most part it is this overconfidence that you need to start taking into account. Be honest with yourself. When you suffer a loss, make sure that you look back to see if this is a loss that you have suffered before. This will help you see whether or not the risks that you are taking are truly worth it, and whether or not you need to change your way of doing things to some extent.
Reading Technical Analysis – Charles D. Kirkpatrick II and Julie R. Dahlquist will be a humbling experience for the arrogant trader because of the fact that it will show said trader just how little they actually know all in all. It will also show the importance of acknowledging one’s mistakes.