Here's an interesting paraphrase from Market Wizards book which I think is where most folks (myself included) are having problems. I'm all ears if anyone has input/ideas/suggestions to help break through this threshold.
Most traders see gains and losses in terms of monetary implications, and this mindset gets in the way of making objective trading decisions. If you can get to the point where the gains/losses are just a means of "keeping score" you'll be much more level headed.
For example, if you have a $5k account, and then you're down $2k, many people will start saying "well that remaining $3k can pay for XXXX".
The key is (I know I struggle with this and I think its an trading experience related item) - Its one thing to get out b/c you no longer like the position, but its another to liquidate on impulse simple because you have translated the loss into tangible terms.
To me this is *ONE* major difference between myself and Dale which I wasn't fully aware of until I read it in the one interview. I can say as soon as I read it, I was able to fully identify and own that issue, which identifying the problem is the first step to making it "over the hump". So hopefully that tidbit is helpful to some others as well.
If not, skip right over and head to the next post
