The Market is the king of all kings when it comes to trading. Many traders enter the Market with the belief that they will become multi-millionaires in a very short period of time and start disrespecting the Market. As we have always said, the Market is very mysterious and most trader experience a higher degree of success during early stages. It is at this early stage when the Disease of me starts growing and creating a very turbulent and dangerous future for the traders.
Ego by definition is in your conscious mind, the part of your identity that you consider your “self.” If you say someone has “a big ego,” then you are saying he is too full of himself / herself. Another state of mind related to Disease of Me is illusion, which is something that deceives by producing a false or misleading impression of reality. Illusion combined with ego creates puts a young trader in a very dangerous state of mind. In this stage, trader would start feeling highly over confident about their trading ability and start believing they can beat the market. If you want to succeed as a day trader pay attention to the stock market and the best stocks to trade.
Traders use many tools to forecast the Market. Some choose the Fundamentals while choose to use the Technical way of trading. We have learned that regardless of the way you trade, some stages need to be passed before a trader can say that they can trade for a living. As Humans, we tend to believe in our self a lot and sometimes, we believe to much in our self as individuals who can do everything and beat any system. If a trader enters a trade with huge leverage and the trade works in their favor making them double their account in just one or two trades. If the trade first goes against the trader, trader opens the stop to stay in the market and then if the market reverses and goes in trader’s favor resulting in a big win, the trader can being to think that Market is easy to beat. Reality is
that the Market is trapping the trader for failure. Once the Disease of Me takes over making the trader, trader will make outrageous decisions like opening stops, trading against the trend, trading with huge leverage and increasing position size after a loss to recovery the losses quickly. As a result, the trader would end up losing their account and sometimes their savings too very soon.
The Market always humbles everyone and those that learn to survive and understand that Market rules and dictates it’s own rules, will stay around and make a living out of trading. Trading, after all, is a profession which is ruled by mathematics and learning to listen to the Market music, which many times provides hints about its own intentions. However, most of time the Market ends up doing it’s own thing and Traders who have the Disease of Me won’t survive and will end up losing all their risk capital and many a times, their savings too. The Reality is that human beings have the Disease of Me by nature and only the ones that let the Markets humble them will survive and be able to trade for a living.
Trade Safe & Good Luck,
Eric Morera
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