I came across this really interesting article.
I think it touches on some very interesting psychological aspects of trading.
Some good quotes I like from it are:
Perfectionism can be a great help to people in many professions, but can be fatal to a trader. Perfectionists, always trying to find the “Holy Grail” of trading, go from one service to another, from one system to another, looking for a way that they can be right all the time.This is perfectionism in action. Not only does this type of irrational behavior and belief undermine and demoralize a trader, but it takes away all the enjoyment and fun of being in the markets. It leads to depression, with depletion of psychic and physical energy, and leaves the perfectionist to confront his/her basic and overriding fear: fear of failure.If you have a perfectionist mentality when trading, you are setting yourself up for failure, because it is a "given" that you will experience losses along the way. You must begin to think of trading as a game of probability. Your losses (which you hope will return to break even) will kill you. If you cannot take a loss when it is small ( because of the need to be “perfect”), then you will watch that small loss grow into a larger loss, and so on, into a vicious cycle of more and more pain for the perfectionist. Trading on hope does not work. The markets can remain irrational for a lot longer than you can remain solvent.The object should be excellence in trading, not perfection. Moreover, it is essential to strive for excellence over a sustained period, as opposed to judging that each and every trade must be excellent. This is a marathon, not a sprint.The greatest traders know how to take cut losses and let winning positions run. Perfectionists often do exactly the opposite. They get in at the wrong time, stay in too long and then get out the wrong time. Perfectionists are always striving and never arriving.Happy trading,Learn from your mistakes, and forgive yourself and make peace with your past. Strive to be better, not perfect; just an amazing human work in progress.