Beating Alpha

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Have a realistic expectation

Unrealisticexpectations

Expect unexpected and make sure to be ready for it anytime. Make sure you are aware that one scenario can repeat 100 times in a row and do not expect any shortcuts. If you put yourself in a position with unrealistic goals you are going to be distressed and deprived. Once you are in this mood you can much easily make mistakes (trading when you should not, adding to a position when you should not, not trading when you should, etc).For that reason I definitely do not recommend to set yourself daily $ TARGETS because by doing this you are simply stating:

“Market is not a game of probability and all trades I am going to make are going to be winners only”.

Of course this is not true. If you want to set a daily target I would approach it from different angle. Set yourself a daily loss limit on money you have earned that day so you can make sure not to end up on positive day in the red. It is very good for your confidence and for building your discipline. Because here, you are stating that the market is a game of probability and the only outcome you can control is your risk (in this case) through position sizing. So, have a real and definite goals which are mirroring the true picture of the markets.

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