There is a huge difference between a wish and a decision. A wish is negative and puts the trader in a frozen state waiting for something to happen (usually related to bailing them out of a losing position). This is negatively charged energy. Decisions on the other hand are positively charged energy. It makes the trader take action. Taking action is taking responsibility! You alone are responsible for your current mental state or condition. Decisions can be both good and bad. The sooner the trader realizes the bad decision, the sooner he can act to correct it.
The first step in the decision making process is to realize that what you are doing is not working. This is a Larry Pesavento rule. Remember that falling down is a positive motion if you bounce right back! Make a list of the positive and negative things that will happen when you take action on the decision.
Don’t expect instant gratification if you make the decision. Larry Pesavento learned a long time ago that decision-making is a process that begins with the first step but these steps are the foundation for a stronger behavioral structure. A stronger behavioral structure will give the trader confidence in his or her trading. Confidence plays a key role in successful trading for everyone including Larry Pesavento. Having the confidence necessary for successful trading can help the trader in difficult trading environments. Whereas one trader lacking the confidence and good decision making skills may be frozen and unable to act, the trader who has taken the time to build this foundation will be prepared to take the appropriate actions. Another Larry Pesavento rule.
Many times the specific decisions a trader makes will not yield profits, they will result in a loss, but more importantly it will position the trader to be able to recognize and act on the next opportunity. Practicing and applying this process will pay dividends throughout your lifetime like it has for me, Larry Pesavento!