Page 17 - Psychology Course Study Manual

Losing your perspective is worse than the money you lost! Why? Because losing your

perspective is similar to losing your soul. You are all you have, so if you give up on yourself by

losing your perspective, you have failed! You only fail if you give up! Many traders that lose
their perspective begin to feel like total losers not only in trading but in life. It is sad to see

traders that have lost their soul because they lost money on a trade!

Here are a few guidelines to help keep you from losing your perspective.

 Trade only with money you afford to risk
 Always use stop-losses when trading

 Expect some losses and keep them small

 Stay objective

 Enjoy the process of trading and learning to trade

 Be able to laugh at yourself

 Have balance in your life

 Have activities outside of trading
 Don’t think about trading all the time

 Focus on skill development, not money

 Be humble

 Let go and have fun trading

These points all have one major objective, to separate trading into a manageable segment of
your life and not make trading your entire life. This way, you stay objective, balanced, and

fresh when trading. This is much healthier than making trading all you have in your life. Usually

a well-balanced person will outperform an unbalanced person whether it be trading, athletics,

or a business venture.