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What's my real reason for trading?

"The Rorschach test (also known as the Rorschach inkblot test, the Rorschach technique, or simply the inkblot test) is a test in which a subject's perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex scientifically derived algorithms, or both. Some psychologists use this test to examine a person's personality characteristics and emotional functioning." (Copied from Wikipedia)

Trading is a kind of a Rorschach test, mirroring the personality of the trader's needs and desires. We need to ask ourselves "What is my real reason for trading?" because whatever our underlying motives are, they will show up while trading. Pursuing these hidden goals will negatively affect our trading. Not knowing why they exist may cause us to wonder why certain things keep happening over and over. Finding out the real motives behind why we want to trade will help us to understand why we do certain things, and will help us to become better traders.

 

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Saturday, 22 June 2024

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.