To remain focused disciplined and confident in difficult periods, we need to have integrity and honesty, self-awareness and commitment . Of these, I believe that honesty and self-awareness are by far the most important. If we are losing money in the markets, then honesty demands that we recognize this as such and that we take appropriate action. That action may be to take some time away from trading, or it may involve a re-examination of the trading plan. Self-awareness is an understanding of our own emotions.
Most human beings move away from their emotions particularly if they are painful.
It is part of our humanity that we move towards pleasure and away from pain. In addition, and as a general rule, this is the strategy that we have been taught to deal with painful events. Unfortunately, this is the strategy that will not work in the market. Indeed, painful emotions are a signal that something may be wrong, and that we need to give it due attention. Commitment and Integrity are similar.