Carl’s Quick Tips – #11

11. EGO

A high level of success experienced in other business endeavours can cause you to be extremely confident and bolster your ego. However, this can be a huge negative in trading as an inflated ego can lead to stubbornness which in turn can lead to escalating losses. Your reputation, your station in the community, your financial stability; none of this concerns the market. All the charm,powers of persuasion, number of diplomas on the wall or accumulated business savvy will not impress the market when you are holding a bad trade.
The most important question a trader can ask himself when faced with a bad trade is: do you want to be right or do you want to be happy? Happy traders exit bad trades quickly.