FOREX TECHNICAL ANALYSIS

Traders would benefit from our own self-help organization—I’d call it Losers
Anonymous.

Why not Traders Anonymous? Because a harsh name helps focus attention on our self-destructive tendencies. After all, Alcoholics Anonymous doesn’t call
itself Drinkers Anonymous. As long as you call yourself a loser, you’ll focus on avoiding losses.

Several traders have argued against what they thought was the “negative thinking”
of Losers Anonymous.

A retired woman from Texas, a highly successful trader, described her approach. She is very religious, prays every morning, and then drives to an office where she actively trades. Whenever the market starts moving against her, she cuts her losses very fast because it would not please the Lord for her to lose His money.

I thought that our methods were similar. The goal is to cut losses due to some
objective, external rule.

Trading within a businessman’s risk is like living without alcohol. A trader has to
admit that he is a loser, just as a drunk has to admit that he is an alcoholic. Then he
can begin his journey to recovery!

This is why every morning before trading I suggest saying: “Good morning, my
name is so-and-so, and I am a loser. I have it in me to do serious financial damage to
my account.”

This is like an AA meeting—it keeps your mind focused on the first
principles.

Even if you take thousands of dollars out of the market today, tomorrow
you say: “Good morning, my name is so-and-so and I am a loser.”

A friend of mine joked: “When I sit in front of my quote screen in the morning,
I say, ‘My name is alice, and I’m gonna rip your throat out.’” Her thinking generates
tension. “Losers Anonymous” thinking generates serenity.

A trader who feels serene and relaxed can focus on looking for the best and safest trades.

When a sober man and a drunk enter a race, you know who is more likely to win. A drunk may win once in a while, but the sober man is the one to bet on. You want to be the sober
man in that race!

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