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Isn’t it true that some of us simply can’t avoid making predictions and resolutions for the next year while also look back at the year that is now vanishing and think about successes and failures?
Inevitable, I guess.
Let me list below 4 things that are, in my estimation, pretty useful for your next year. If this list will make you stop to think about your future as a trader and the mistakes you made in the past, goal achieved.
1. The ego is the enemy
It’s impossible to not start with the mindset. Your ego is your worst enemy. Do not try to impose your convictions, opinions, and perfectionism at any cost. Let the data, the method, the trading structure guide you in this business, not the other way around.
2. Learn to err
Learn how to err simply because you are going to anyways. Just make sure to incur in the type 2 error that is to accept a false null hypothesis. The Type 1 error can lead you to ruin while Type 2 will only make you lose an opportunity in the market. Learn how to deal with the FOMO.
3. Expose yourself to the markets
If you don’t trade, you won’t make money. Sounds logical but most new traders are so afraid of making mistakes that they will never graduate from the paper account. Expose yourself to the markets with structure and method. Learn how to lose money, keep your zen and stay in the game.
4. Learn how to use leverage
“When you combine ignorance and leverage, you get some pretty interesting results.”Warren Buffet —
Warren Buffet is right. Get a $5,000 account to manage some $100,000 and you will be cooking with gas right away. The problem is that you can get burned and blow your account before you notice. Have strict rules and do not use the “milk money” but “Caipirinha money” (shout out to Coach Slawek).
Speaking of Caipirinha, let me get back to the festivities.
Happy Christmas to #TeamTackle!
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