Monday, August 16, 2010

The Daily Note - Promises Promises

Not many things disappoint as much as a broken promise. We all make them, and we all received them although not everyone really believes in them. In fact many consider a promise, if believed, as a childish fantasy; after all, "Promises are made to be broken".

Still and yet, I think we all believe them, even if, only a little and we also all get disappointed even if, just a little. No matter how little or how much, a broken promise is a trust betrayed.

Think about the worst broken promise you experienced from someone close: your girlfriend, boyfriend, spouse, your parents, siblings, or even perhaps a salesman or business. Think about how the disappointment felt and how you may have sworn never to fall for another promise from that person, again.

Now, think about your own trading plan and think about the number or times you have broken the promise to yourself to stick to it. Each time you broke a promise to yourself, it disappoints as much as any promise from others. The only difference is that, you cover the feeling with excuses you may not have permitted with others. Each cover buries the feeling of pain a little more, but it teaches the lesson not, otherwise you would not make yourself yet another promise to: put in that stop, take that gain, stick to the plan or the all encompassing "This time it will be different".

The only promises that are made to be broken are the ones that will hurt your self-esteem. Each promise you make and break erodes your belief in yourself, and ultimately your trust in your trading plan resulting in an inability to trade.

The commonality of trading and a promise is trust; trust is the anchor, without which trading is like being adrift in the dark, which is the result of promises you can't keep.

Happy Trading, Living and Dancing

The Daily Pick - GOOG

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