Thursday, April 28, 2011
Yesterday... Today and Tomorrow (Trader Psychology)
There are two days in every week about which traders should not worry, two days which should be kept free from fear and apprehension.
One of these days is YESTERDAY, with its mistakes and cares, its faults and blunders, its aches and pains. YESTERDAY has passed forever beyond our control.
All the money in the world cannot bring back YESTERDAY. We cannot undo a single act or trade we performed; we cannot erase a single word we said. YESTERDAY is gone.
The other day we should not worry about is TOMORROW with its possible adversities, its burdens, its large promise and poor performance. TOMORROW is also beyond our immediate control.
TOMORROW'S sun will rise, either in splendor or behind a mask of clouds - but it will rise. Until it does, we have no stake in TOMORROW, for it is yet unborn.
This leaves only one day - TODAY. Any man can fight the battles of just one day. It is only when you add the burdens of those two awful eternities - YESTERDAY and TOMORROW - that we break down.
It is not the experience of TODAY that drives men mad - it is remorse or bitterness for something which happened YESTERDAY and the dread of what TOMORROW may bring. We can only learn from YESTERDAY to prepare for TOMORROW.
Let us, therefore, live but one day at a time. Focus on risk, use stops, prepare to take losses, and profit will follow.