To become a successful trader there are three things that a trader must constantly deal with. They are objectivity, fear and greed. When trading becomes too serious...when the outcome takes on great importance, then fear and greed tend to influence the trader's decisions. The trader loses some objectivity as the situation becomes more serious. At some point fear and greed can take over entirely and when that happen the wrong decision will usually be made.
If having a playful attitude about trading will make you a better trader, then how do you do it? That's a good question. There may not be a pat answer that applies to every trader but let me tell you what works best for me.
1. Look at the markets in terms of numbers, of lines on charts. Think of the markets as a challenge...a game that is fun to play. Think of it as a game of percentages... a game of discipline. A game to see if you can always do the right thing.
2. Don't think "money". Think in terms of points. Never count your money in a trade while still in the trade.
3. Don't trade to make money... trade to win the game. The point is, don't put the emphasis on money but on being a successful trader. When you are successful the money will be there.
4. Keep fear and greed out of the picture by taking very small positions at first. When you become successful then gradually increase your positions size... but never enough so that you begin to think "money".
Whether you won or lost a particular week is not the important thing. It is better to have done the right thing and lost than to have done the wrong thing and won. Doing the wrong thing puts you on the road to ruin. Doing the right thing insures your success.
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