Monday, November 27, 2006

The mind has limited energy

Research studies have demonstrated that when people's psychological resources are taxed to the limit, they make impulsive mistakes. Maintaining discipline takes psychological energy, and when you use it up, you have to rest. Just like a muscle, when you are worn out, you need to take a break and regain your strength. It's vital to consider that the mind has limited energy, and that after putting in a hard and tedious effort, you must take a rest and rejuvenate, so you can face the world with a renewed sense of vigor. This applies to trading.

No comments: