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This newsletter continues with some small grabs from my upcoming book the Zen Trader. The book will be available to buy online 26th April.
The book is a little different, it's not just a trading book but a book with some “soul”. I know that word is thrown around a lot lately as many question our lives and the changes thrust upon us, for I believe there is no point in trading or investing if all it does is make us miserable. With that philosophy in mind comes the Zen Trader.
A reminder that if you are interested in my weekly market comments (featuring this week the Nasdaq) also the 52 week closing highs for the ASX, then click on the link below where I post them every weekend.
https://www.easysharetradingsystems.com.au/how-to-trade/52-week-highs
With no further ado here is a sample from Chapter 3 “Obstacles of Logic”
Considering that statistically 90% to 95% of traders lose or break even, one of the reasons for poor performance is probably that they are buying and selling at the wrong time. This can be a result of trading too often………
However, many find longer-term trading difficult, because of the challenges of boredom and the need to practice delayed gratification. It seems as if there is no escaping the emotional component of trading, whether you trade short term or long term………….
My trading partner once described frequent trading as “being sucked into the market vortex.” As any experienced trader will tell you, that vortex can be very stressful, particularly when trading in short time frames. So, a re-examination of your trading time frame can improve both trading results and your mental health………….
It seems whatever strategy or time frame a trader uses has its challenges. The obstacle that is the root cause of poor performance in trading is the inability of the trader to detach. Attempting to control the market by complicated or short-term systems is not a long-term solution. The solution is to learn the Zen skill of detachment – a technique that will be discussed at length in the following chapters…………..
I will follow up this email with another ASAP - containing a small example from the next chapter, until then live and trade well - and click on the Harriman's link below for more info about the book.
Peter
https://www.harriman-house.com/zentrader
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