By Joe Ross on Thursday, 23 February 2017
Category: Trading General

Self-forgiveness and resolution

If your financial losses have injured or hurt your personal relationships, you must apologize and ask those persons for their forgiveness. Most people will forgive you immediately but whether or not they forgive you is unimportant. It is most important that you forgive yourself and resolve not to repeat the same mistakes. It’s also important to realize that if the offended person does not forgive you, it becomes his or her problem. Once you ask forgiveness, the problem is no longer yours. Self-forgiveness and resolution not to repeat mistakes is the best antidote for fear, anger and guilt, the three emotions of personal and financial destruction. Never use living expense money to trade the markets. Traders should only trade disposable income, an oxymoron if there ever was one.

Markets seldom make major tops or bottoms based on any one government report. Many traders have a look of shock on their faces when markets fall after a bullish report, but that is what the market wanted to do before the report was released. There is a natural tendency of professional traders to discount reports and state that the price action was already in the market before the report was released. Fundamental traders should rate reports as: + = bullish, + + = very bullish, 0 = neutral, - = bearish, and - - = very bearish. I traded cattle in the late 1970's and early 1980's and the market moved opposite the reports over 60% of the time the next day and over 70% of the time by the following week.

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