Pride Goes Before a Fall

Next to lack of discipline, I find that pride has resulted in the destruction of many traders. Pride is a powerful emotion. Pride is what we feel when we've made a great trade or done something that makes us look good in the eyes of others.

Trading is a tough business. Few traders succeed at it, so when you are doing well, you feel proud. But watch out! There come a time when pride can overpower you. A trader cannot afford to allow himself filled with pride. If you do that, you are going to have an ego problem. You may begin to think of yourself as invincible—at that point in time you are in big trouble because you are no longer thinking clearly.

To be a winning trader you cannot be overly proud. Work at being humble and doesn't try to compete with others. The only competition you should allow is competing with yourself. Look at your past performance and try to do better. Don't compare yourself with others. Humility helps you to have a clear, focused, and objective mind.

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