There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Saturday, March 3, 2012

Mind Your Words

Words have incredible powers.They create impressions and mental images. Simple normal words like "Loss" can create psychological problems.They influence how we think and these thoughts determine our actions.

Now .Relax and close your eyes.Just think about"Loss".What do you see ?

A theft ? an accident ? a flood ? something burning down? or a pauper begging on the street?. I am sure You will see many unpleasant images.These feelings can kill your enthusiasm,impact your self esteem,lower your expectations and hold you back.No wonder traders find it hard to take losses.

Let us call "loss" something else, say "Expense".Now it feels better. Something business like.Trading is a business where our "wins" are our income and our losses are our expenses.

Treat trading losses just like any other expenses like brokerage,telephone bill,data feed charges and internet charges. As in any other business try to increase income and reduce expenses to become more profitable.Once we realize this we are much likely to be better, profitable traders.

So, mind your words.


  1. Hi ST:

    Good article. The vibrations of the language we use reverberates in everything we do in our lives.

    Thanks for the very good article, short and sweet.


  2. Thanks SS and VK
    for your comments and encouragement



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