| A colleague of mine just returned from a scuba diving | | | | Years ago I had the good fortune of talking with a |
| trip in Cozumel, which just happens to be one of my | | | | trading guru for several hours. This individual is world |
| favorite places to dive. Anyway, she was telling me | | | | renowned for his trading saavy and skill. What he |
| about an unexpected difficulty she encountered while | | | | elaborated in that conversation had a tremendous |
| swimming around the corral reef down about 85 feet. | | | | impact on me. HE said that when he learned how to |
| It wasn't anything serious but her story reminded me | | | | trade that his family enforced only one rule that he |
| of something my scuba instructor used to say over | | | | had to follow. KNOW WHERE YOU ARE GOING TO |
| and over again. "Plan your dive, and dive your plan". | | | | GET OUT BEFORE YOU GET IN. He felt that the |
| When you're down about 90 or 100 feet the | | | | problem that most traders had was that they felt |
| nitrogen acts on your body in a way that's not too | | | | that this simplicity did not apply to them. I remember |
| dissimilar to having one dry martini on an empty | | | | sitting and speaking with him and thinking about my |
| stomach. It's called Nitrogen Narcosis, Rapture of the | | | | own mistakes, primarily letting hope take over in my |
| Depths, or Martini's Law. So the thing to do is get | | | | decision making. |
| your planning done while you have a clear head, (i.e. | | | | Many traders think that crying "UNCLE" on a trade |
| on the surface). And then when you're deep into it, | | | | and taking a loss is unacceptable. Since that |
| and you're feeling a bit euphoric, or nervous, you | | | | conversation I have taken numerous losses on trades |
| don't have to make any decisions about 'what' to do. | | | | but it's funny how they don't have the STING that |
| You just follow your plan. | | | | they used to because I PLAN MY DIVE and DIVED |
| This holds true for trading as well. When you're | | | | MY PLAN. |
| feeling the euphoria or nervousness set in, remember | | | | This is really simple and incredibly workable. Apply it |
| to follow your plan. And, uhm yeah,, also have a plan | | | | to your own trading and investing. |
| to follow. Clear heads will prevail. | | | | |