Who the hell wants to detach?

Easy to spell, right?

Hard to attain, though. 

Why would one want to detach anyways?

Detachment is a must for success in the markets.

Any market.

Detachment is not really a human instinct.

We are born because we are attached. 

Attachment comes naturally to us. 

Detachment does not. 

Cut to the markets. 

Market psychology works in reverse to our natural instincts. That’s why, losers are many, and winners a few. 

That, by the way, is the similarity between detachment and market success.

We’ll need to learn to detach, if we want winning market-play. 

This is an achievement-oriented society. 

We like resumés.

We like to post it the moment we nail it. 

We like to book profit the moment we have a mover. 

We like to hide our short-comings. 

Weakness?

What weakness?

We nurture our losers, hoping they’ll at least make it to break-even one day so that we can book them. 

See?

Yes, market psychology works in reverse to our way of functioning. 

What does detachment do?

It takes us away from the euphoria of a mover. 

We learn to let the mover … move. 

We learn to not book it. 

It then moves, and moves. 

Eventually, it starts to fall.

We set a stop and let the market throw us out. 

That’s how one exits an underlying showing a profit. 

What has detachment done here?

It has caused us to book a big profit instead of a small one. 

What else does detachment do?

It reforms us such that we recognize and acknowledge weakness, and then cut the weakness off immediately upon such recognition and acknowledgement, as per the definitions of our trading systems.

What has detachment done here?

It has caused us to suffer a smaller loss now rather than a potentially much larger loss later.

Repetition of this cycle – again and again and again – sorts us out for life. 

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Looper

I know, that Bruce Willis sci-fi movie… 

… is also called Looper. 

Know any other Loopers? 

There’s one in your body. 

In hardware terms, it’s your brain. 

In software terms, it’s your mind. 

Its ability to loop can become a tendency. 

Any problems with that? 

Sure. 

Big ones. 

Imagine a trade. 

Goes wrong. 

You’re drained. 

You get out. 

Loss.

Done? 

No. 

At this point, don’t let your mind loop. 

It will, if you allow it the leeway. 

If it loops, you’ve lost the energy value of two trades or more (fatigue) while losing one trade. 

Don’t delve on the loss. 

Move on in search of your next winning trade. 

Define conditions that stop your mind from looping. 

For example, when entry value is small enough to not be bothered about, its partial or even full loss might not be enough to cause your mind to loop. 

And that’s the position you want to be in. 

No looping.

No overthinking. 

Just trading. 

🙂