Chapter 14
Getting a Better Grip on Your Trading Ego
IN THIS CHAPTER
Dealing with mistakes
Ridding yourself of the illusion of control
Differentiating ability from luck
Managing your overconfidence bias
This chapter is all about our fundamental weaknesses as human beings. Our egos, for example, are our greatest enemies when it comes to trading — and thus require special attention. You'll find out how to recognize (and learn from) mistakes without impacting your self-esteem. Regular self-reflection and the meticulous keeping of a trading journal are essential parts of this process.
Dismantling the Myth of Learning from Your Mistakes
“We learn from our mistakes” is a common enough phrase. It’s based on the (unproven) assumption that humans learn from mistakes made in the past. Supposedly, mistakes are valuable experiences that allow us to be better in the future. At least that's the theory.
Psychology makes a distinction between good and bad errors. Good mistakes are constructive ...
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