Why I have not accepted ambiguity in the markets?
Well first I had to learn what it was, and then I had to come to understand how it controlled my actions on the unconscious level. Now that I have become aware of Ambiguity Aversion, I have accepted its energy and how it has affected my trading decisions.
As a result of not accepting multiple outcomes my fear of regret was fueled. This only cost me money. In a winning trade I would cancel my exit order for fear it would continue then watch the market pull back or I didn’t stop out for fear it would reverse.
For me, my want of being in control, being right and the want of obtaining quick measurable results only magnified my unconscious aversion to ambiguity. These three wants make up my fear of regret. I was not getting to where I thought I should be in my trading. Fear of regret was in fact causing my setback. Even though I did the exercises to manage ambiguity aversion, I look back now and I truly did not feel it until after the trade. My three fears still overpowered my ability to truly see the market with a clear perspective. This resulted in profitable trades disappearing.
My control comes from being in my own business. In having success providing a product or service to help others obtain their objectives or offering a solution to a problem.
I would feel good about this and get paid for it.
The market could care less about me.
Being right stems from the above, the more I was right, the better I felt and the more I was paid.
Again the market could care less.
Measurable results, the more on your resume the more value you bring. Right?
Again the market does not care.
Now being aware of the above and how it has negatively affected my trading, I need to be fully aware of my three wants and fears. Trade only when I can clearly feel they are not contributing to my decision process. I will then see the market for what it is offering.
By doing this, what I want out of trading will be a byproduct not the driving force.
To help me lesson my fear of regret, I write before each trade session;
By NOT accepting multiple outcomes has NOT helped me to date!
No one really knows what will happen; the purpose of any ONE trade is
just part of the process.
Writing these two things will keep my focus on the bigger picture i.e.; monthly performance, and take away the importance of any one trade and therefore the fear of missing out or regret will be lessened.
By widening my emotional vocabulary, I now have learned to anticipate, recognize and most of all embrace my feelings to bring the unconscious to the conscious.
This gives me my edge over the other traders who do not accept or understand their own aversion to ambiguity.
The markets are ambiguous; anything can happen with so many people playing in different time frames in one playground, no exit will ever be perfect. The reason I am in the market is to make money, not prove I’m right. If I sell and it runs so what, I will get them the next time. If I get stopped out, say you bums and get them next time. Play the game as if it liars pokers and call their bluff. In the mean time take their money.