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Treat trading as a business, not a game from "summary" of Trading in the Zone by Mark Douglas
Trading is not a game; it is a serious business that requires a strategic mindset and disciplined approach. Just like any other business, trading involves risks and uncertainties that must be carefully managed. Traders who treat trading as a game are likely to make emotional decisions based on impulses rather than logic. When you approach trading as a business, you are more likely to have a clear plan and defined goals. You will understand that success in trading is not about luck or intuition, but about following a well-thought-out strategy and sticking to it. By treating trading as a business, you are more likely to take a systematic approach to decision-making and risk management. In a business, profitability and long-term sustainability are key objectives. Similarly, in trading, the goal is to make consistent profits over time by minimizing losses and maximizing gains. This requires a structured approach to analyzing markets, identifying opportunities, and executing trades. By treating trading as a business, you are more likely to focus on continuous learning and improvement. You will view setbacks as opportunities to learn and grow, rather than as failures. This mindset shift can help you stay motivated and resilient in the face of challenges.- Treating trading as a business means taking a professional approach to every aspect of your trading activities. It means setting realistic goals, developing a robust trading plan, managing risk effectively, and maintaining a disciplined mindset. By making this shift in perspective, you can increase your chances of success in the competitive world of trading.
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