No Memory

“There’s a strong human tendency to mull over the past and think that what has happened in the past has a strong impact on what will happen in the future. We tend to believe that we can learn from our past mistakes, and we often do. But there are times when there is little to learn, and it is useful to move on and see what happens next, instead of unnecessarily mulling over past losing trades that were just a fluke. Seasoned traders warn that it is not wise to get bogged down by a series of unexpected losing trades that were just a matter of market “noise.” It makes no sense to take things personally or to place more significance on a setback than is warranted. It is important to learn to pick yourself up after a setback. Think optimistically. There is always a new play to develop. There’s the next pitch, the next opportunity where you can come out ahead. You can’t let a series of losers ruin what could happen next. Athletes have known this for quite some time. Whether it is tennis, football, losing a sale, or trading, it doesn’t make sense to let yourself get stunned and stagnate. It’s better to just say, ‘Okay, I made a mistake, what’s next.'”

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