Why a good mentor is absolutely necessary.
Especially when one decides to make Trading/Investment as his full time career and no other income to support and for self sustenance.
Cost of the learning curve time .
Every body I presume must have started with failures.At least from my personal exp and experiences of local traders who I know every one entered this career after wiping out their trading losses couple of times.
Once capital is eroded then comes the psychological obstacles.
What are they ?
Stage 1:
------------
1.Loss of self worth.
2.Loss of Self confidence.
If the second attempt also fails not to the level of loss in the first attempt.
Stage 2:
-----------
1.Loss of self worth.
2.Loss of Self confidence.
3Indicator fascination.
4.Analysis paralysis.
(Trying to find a near perfect solution or strategy and
Optimization of the strategy).
5.Lack of emotional support from the family and peers.
6.One gains the importance of preserving the capital as the capital has diminished and time to break even the draw down takes more time.
The third attempt takes more time and more physiological barrier as the negative image and failure becomes a chronic habit.
Stage 3:
-----------
1.Fear of outcome - - and hence lack of confidence in implementing the decided strategy rigidly. - I must thank Linkon ji for this.
Advanced stages
---------------------
Greed and taking over leveraged position due to over confidence etc.
Especially when one decides to make Trading/Investment as his full time career and no other income to support and for self sustenance.
Cost of the learning curve time .
Every body I presume must have started with failures.At least from my personal exp and experiences of local traders who I know every one entered this career after wiping out their trading losses couple of times.
Once capital is eroded then comes the psychological obstacles.
What are they ?
Stage 1:
------------
1.Loss of self worth.
2.Loss of Self confidence.
If the second attempt also fails not to the level of loss in the first attempt.
Stage 2:
-----------
1.Loss of self worth.
2.Loss of Self confidence.
3Indicator fascination.
4.Analysis paralysis.
(Trying to find a near perfect solution or strategy and
Optimization of the strategy).
5.Lack of emotional support from the family and peers.
6.One gains the importance of preserving the capital as the capital has diminished and time to break even the draw down takes more time.
The third attempt takes more time and more physiological barrier as the negative image and failure becomes a chronic habit.
Stage 3:
-----------
1.Fear of outcome - - and hence lack of confidence in implementing the decided strategy rigidly. - I must thank Linkon ji for this.
Advanced stages
---------------------
Greed and taking over leveraged position due to over confidence etc.