Page 29 - Psychology Course Study Manual

testing method is to “paper trade” for a long enough time that you come know the best, and

the worst that your trading system produces. “Paper-trading” in my opinion is better than

computer back-testing because it represents how YOU actually are trading the system or

approach in a stress free environment because no real money is being used. I always say to
traders, that if you are not profitable “paper trading” then you will not be profitable trading

with real money. In other words, you are not ready yet to actually trade! It is far better to

know you are not yet ready then to jump in head first and lose your shirt!

So the first step in getting a handle on your emotions is to create a stress free trading

environment that provides a solid foundation for you to apply your trading skills, and then

access how you are doing. If you create a stressful trading environment, then you are short

changing yourself before you even start actually trading.

Emotions

Neo: "I know what you are trying to do!"

Morpheus: "I am trying to free your mind Neo. But I can only show you the door. You

are the one that has to walk through it.

You have to let it all go Neo, fear, doubt and disbelief. Free your mind!"

Morpheus: "There is a difference between knowing the path and walking the path."

From the movie: "The Matrix"

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