One time, I never read a line of a seasoned trader, Lucian Thomas Baldwin III or better known as Tom Baldwin, who was also was a well-known trader on Wall Street. Maybe because it was so great, the Wall Street Journal to ever describe a Tom Baldwin as a trader who is considered able to move the Treasury bond market simply by “hand”. Wall Street Journal would have to write their own reasons so so. But I’m not going to talk about “the legend” attached to the name of a Tom Baldwin. This time I will discuss only one sentence that I have of him in my mind. One time, Tom Baldwin said, “The best traders have no ego. You have to swallow your pride and get out of the losses. “Without ego. That is according to Tom Baldwin undue owned by someone when he was acting as a trader. Humans certainly have an ego, because if not, then he will not be aware of its existence as a human being. But of course we are not talking about “human ego”. Well, before I became slurred talk about human philosophy, then I would limit the definition of “ego” into “ego trader”.
I agree with the sentence Baldwin when he said that a good trader should not have an ego. Why? Because a trader who controlled his ego will tend to do stupid things that are not supposed to do a trader. He will tend to violate the most basic rules, such as allowing an open position against the market. Baldwin advocated for “self-forgetting” when we experience a loss, but this is what can not be done by a trader who controlled his ego.
He would feel very embarrassed to lose, even less likely to want to admit that he had made a mistake in analyzing the market. Transactions of the losers will always be left open, in fact it will likely open a new position in the hope of bounce is imminent and the price will reverse direction at will.
He will not forget that there may be arrogant traders in the presence of the market, because if a trader do that then 99% he will be crushed by the market itself (the remaining 1% is just sheer luck). Trader held Proudly ego will stand in front of his colleagues, perhaps even standing proudly in front of the market, pointing to his chest and said “I’m not going to probably wrong!” But ironically, it is like it will very quickly off the stage trading.
So, the choice is yours. Do you want to throw your ego when you are in front of the monitor market prices or not. If yes, then its implementation would be very easy: obey all your trading plan, including transactions that have been losing throw. Or you choose to play the “macho man” with the market? Well, it’s up to you.