In trading there is a Catch-22 which I am positive that you have experienced at least once, probably several times in your trading career.
Heck, you may be stuck in it right now.
Part of why you’re there is because of what you keep seeing and hearing.
You keep getting caught up in it because of the Fatal Flaw in what they keep telling you, even though it sounds quite reasonable on the surface.
It’s much like when you got out of school and went job-hunting.
Remember that?
They’re sitting there saying,
To which you respond,
The Trader’s Catch-22
Traders have a similar problem regarding discipline when it comes to their trading system, especially when you try something new.
You want to have the discipline to be able to stick to the system – you KNOW that this is a must.
Now it’s a simple fact that without sufficient confidence it comes down to a matter of will-power, which WILL fail you – usually sooner than later.
The problem is that it takes some reasonably significant experience with a system to establish the kind of confidence you need to get through the losing period – that will occur.
But when those losing spells occur, doubt and anxiety come raging in, hammering your confidence – and making it almost irresistable to start second-guessing your system and to begin playing with the rules.
Afterall, you are the type of person to take action to fix things when they seem broken.
The Catch-22 is that you rarely get enough trades under your belt where you’ve been sticking to the system to establish that solid confidence in it – and you need the confidence to get enough trades in.
But the REAL culprit here is the Fatal Flaw in what everyone keeps telling you.
The First Fatal Flaw
So you get an email about the latest greatest “Dirty Secret” some guru has been making a mint with for the last 1000 years and they suck you in.
You like the system and on the surface it sounds reasonable.
You start trading it and things seem okay to begin with.
However it doesn’t take long.
Even without hitting a losing streak, you notice that you feel a bit if anxiety,
You find that you’re hesitating and you don’t know why.
But they told you that this system is solid and has stood the test of time.
Their results were even verified by an independent and credible 3rd party.
Their logic (with which you concurred):
Follow the rules as they’ve laid them out
Make money
The system is based on a sound premise.
They were being truthful about it being a profitable system in their experience
The Fatal Flaw is that while they ARE good traders and DID create a profitable system, YOU don’t have their years of experience with it, so…
YOU don’t have the same rock-solid confidence with it to trade it the way they do.
So when you try to trade their system, you probably won’t be able to stick to it long enough to establish the confidence required to stick to it,
So you begin ‘deviating’, second-guessing it, making changes.
Before long, you have almost completely lost confidence in the new system that seemed so promising at first.
…especially once the second fatal flaw is exposed.
The Second Fatal Flaw
The second Fatal Flaw in their thinking (and what they share with you) stems from the fact that they aren’t experts in communicating their expertise.
They think they are, but they’re not.
Just because someone is good at trading, doesn’t make them a good teacher.
And there are plenty of systems out there that actually ARE good systems.
The problem is that the person publishing it, doesn’t know all of the qualities of a system needed to make it EASY FOR SOMEONE ELSE TO TRADE.
This just compounds the problem of trying to establish confidence – and fend off the doubt that makes discipline so difficult.
This is crucial and a problem that you have likely encountered when trying to trade a system created by someone else.
So how do you fix these problems, address the Fatal Flaws, and get out of the Catch-22?
Never Again have to put up with these problems!
Cheers
Brian
P.S. Don’t make the mistake of dismissing this!
If you are tired of chasing your tail with little or nothing to show for it, then this insight will be helpful.
