Many of the thinking patterns that adversely affect our

trading are a function of the natural ways in which we were brought

up to think and see the world. These thinking patterns are so deeply

ingrained that it rarely occurs to us that the source of our trading difficulties

is internal, derived from our state of mind. Indeed, it seems

much more natural to see the source of a problem as external, in the

market, because it feels like the market is causing our pain, frustration,

and dissatisfaction.

These are but a few of the many

errors traders perpetuate upon themselves time and time again.

These are not market-generated errors. That is, these errors do

not come from the market. The market is neutral, in the sense that it

moves and generates information about itself. Movement and information

provide each of us with the opportunity to do something, but

that's all! The markets don't have any power over the unique way in

which each of us perceives and interprets this information, or control

of the decisions and actions we take as a result. The errors I already

mentioned and many more are strictly the result of what I call "faulty

trading attitudes and perspectives." Faulty attitudes that foster fear

instead of trust and confidence.

Trading presents us with a fundamental paradox: How do we

remain disciplined, focused, and confident in the face of constant

uncertainty? When you have learned how to "think" like a trader,

that's exactly what you'll be able to do. Learning how to redefine your

trading activities in a way that allows you to completely accept the

risk is the key to thinking like a successful trader. Learning to accept

the risk is a trading skill—the most important skill you can learn. Yet

it's rare that developing traders focus any attention or expend any effort to learn it.