Trading Metaphors

I just love the following trading metaphors from Money Management 1 that I decided to re-print it here (emphasis mine).


"Trading is like driving. Where you want to go etc., the "how much do you want to make" metaphor, depends on me.

• How fast do I want to go? Well, how much risk do I want to take, e.g., tickets, accidents, etc., or in trading, how quickly do I want to achieve my goals.


• How much wear on my car (me and everyone around me) do I want to incurr? I could wear my breaks and tires out by starting and stopping at every stop light - i.e., entering the market by choosing too tight of stops or exits.


• What if I never get where I'm going?
  Have I prepared a road map (trading plan) with check points."

"Trading is all about management - yourself, your money, your attitude and your position. It is NOT about predictions, forecasts or OPINIONS."


And talking about trade management, this one really sums it up best:

• emotions can be managed but not controlled


• view each trade merely one in a series of probabilities


• know why you take a trade and what must happen for you to remain in it (!!!)
  If it fails to happen - get out even if your stop has not been triggered.