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Re: How Storng is Your Conviction?
This idea seems more aimed at new traders who have had their confidence eroded by over-leveraged bad trades, etc, and are now gun shy and have a problem pulling the trigger even if their set up has been achieved. IMHO, "conviction" comes when one has eliminated the emotional component of trading/price chasing ( to the best of his/her ability) and has the discipline and patience to wait for their system to demonstrate a specific confluence of criteria that initiates a trade, and have a tested money management routine once in the market. Over time as we know, profits speak for themselves and one's psychology becomes far less effected by a string of losing trades as long as one's system was followed and not mismanaged during the trade(s). So, conviction as defined in this case would have to be in your trading methodology. I am not a believer in Market Mojo, or whatever. The issue is self trust. Maybe that's what David is getting at?
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