It's fine to celebrate success but it is more important to heed the lessons of failure.Those of you, like I, who have been around the markets for many years have seen seemingly good traders all of a sudden self-destruct. They normally buy 10 contracts (futures, options etc.) and today they bought 100 or they normally buy 100 shares and today it was 1,000. When asked why, they usually respond I don't know, I just did. I have personally seen it many times, an individual taking a position much larger than normal and not warranted under any circumstance. I call it "the big idea", the one that will finally set me free. What causes an otherwise good trader, to one day just violate all his rules and then repeat that same mistake time and again without ever learning? The root of the problem is almost always some form of self-deception and rationalization.
"Under periods of inner stress…a person may become alienated from his real self. He will then shift the major part of his energies to the task of molding himself, by a rigid system of inner dictates, into a being of absolute perfection. For nothing short of godlike perfection can fulfill his idealized image of himself and satisfy his pride in the exalted attributes that he has, could have, or should have." Dr. Karen Horney (1885-1952) Neurosis and Human Growth).
These subtleties often give rise to the gigantic illusion called false pride that hinders many traders. These concepts are so active in trading and in our society that understanding them will prove crucial in gaining self-awareness the first step in personal growth and change, especially for traders.
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