Michael Shermer: The Pattern Behind Self-deception
I may not agree with Michael Shermer on everything he says but this video is something every newcomer to trading should watch and understand every word he says.
Notice in the middle of the video about the baseball players – when batting rate is so low even for professional players, they are also the most superstitious.
As Mr. Shermer pointed out, people like to believe in conspiracy. In trading, blaming something totally beyond control makes it easier to accept the loss you took. But that does not excuse you from failing to take proper measures and steps to avoid being victim in such situation. As a minimum, isn’t it sensible to minimize the potential losses?
In another words, if you believe the market you are trading is rigged, it is important to make sure that,
1. you never trade that market again, or
2. you do everything you can in your power to never become a victim of the scam in the future
You have a choice. It is totally irresponsible when you know you are likely going to lose money and you still bet against the likely potential outcome.
Trading is about making money – nothing else matters.
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