Nice post by Newtrader101.....
Why Traders Have To Learn Trading Methodically
Our tool is our mind. Unfortunately this is a fluctuating tool, it is swayed by emotions and greed. It is never possible to always trade with a level head. It is inevitable that our weaknesses will surface one way or the other, and it will undo all the previous gains. The only way to prevent this is to make a habit of following all the rules of safe trading:
- Risk Assessment
- Stop loss
- Limiting risk per trade and per day
- Daily study
- Daily logging of trades and maintaining records
- Review of trades
- Conducting trading as a business
You can say these rules protect traders from being ravaged by the fluctuations of their own minds.
As the ancient sayings go,
"Manah evah manushyanam karanam bandha mokshayoh" the mind alone is the cause of bondage and freedom
"Atmaivahyatmano bandhuh atmaiva ripuratmanah" One's friend and foe is himself.