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Trading & Patience

  
  Education
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Do you see yourself in any of following mindsets? Have you ever done or thought anything like this? If you have not, then please stop reading since you have attained trading mastery and don’t need any words from me:

No time to wait for setups. It looks like it might work, so I am going to get in now.

No time to wait for this to play out, I have a small profit and it might turn around and go against me, so I am going to get out now.

My position went against me, and it looks bad so even though it did not break support and the downage was on light volume, I better get out now.

The markets are running away without me. I have to find something so I can get in now. Just about anything should work and the most important issue that I don’t miss out on this great move, so I am going to just buy something now.

This setup looks good and I just made some cash on the last two trades and am feeling pretty good, so it’s OK for me to deviate from my system, and get in now.

I lost a lot on the last two trades, and am feeling pretty lousy about the losses so I need to get into something and maybe double up now to try to get it back now.

I don’t have time to wait for setups since I can only trade a couple of hours in the morning before I go to work, so I have to do something now.

I am leaving this lousy service because I want to be trading all day. The markets are here now and I want and need to be in and out of stuff all day so that I can make bank now.

I am feeling so bored right now and just need to put on a trade in order to do something.

The litany is endless, and, at its very core represents the inability to contemplate, to move at a considered pace, to wait for opportunity and to just plain have patience. At its foundation, impatience is a subset of fear and greed and is among the most common reasons for trader and investor failure.

More insidiously, the inability to be patient and wait for trades to come to you or to work out for you, coupled with the continual need to be always doing something in the markets is a form of compulsive gambling. Not speculation, not rigorous systematic trading, but gambling. Not good.

LUCK VS SKILL

  
Analysis, Education
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Successful technical traders know that their technical analysis does not make them successful.
It does not take much skill to learn how to read a chart.  In fact, there is plenty of programs that can do that for you.  Technical analysis provides an historical record; it does not predict what will happen.  History is not doomed to repeat itself in the markets.  No, the skill comes in managing what happens next.  The skill comes in managing the luck handed to us, good or bad.

Technical analysis is a tool that when used properly and for the right reasons will aid the trader in managing what happens at the right hand side of the chart, most of which is pure luck.  Once in a trade the trader is 100% dependent on the decisions and news events that follow, none of which is in his or her control.

6 Trading Rules

  
  Education
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6 TRADING RULES1.IF YOU DON’T LIKE THE TRADE YOU’RE HOLDING, GET OUT.

2.AFTER TWO HOURS OF TRADING, ASK YOURSELF: “DO I FEEL GOOD ABOUT MYTRADING TODAY?” Once two hours have passed, A day trader should have made at least two, or perhaps more, trades, “but enough to evaluate what you have done.” If the trader feels good about the day’s trading, continue. If not, stop trading that day.

3.ALL CYLINDERS OF THE ENGINE MUST BE RUNNING EFFICIENTLY. “Day-trading is a job, and your paycheck is determined by your ability. You can only maximize your ability if you have all the information you need to make trading decisions. “If a piece of equipment that one uses for trading is not working, stop trading.

4.HAVE COMPLETE FAITH IN YOUR INDICATORS.This is a must for success.Many times your indicators give you a buy or sell signal, and you don’t follow it because you don’t have the confidence the signal is right this time. Successful day traders believe in their indicators, but also are aware that nothing is 100% foolproof.

5. TO ANYONE WHO ASPIRES TO BECOME A DAY TRADER, OBSERVE THOSE WHO ARE SUCCESSFUL. “Any information you can procure on the trading philosophies, mechanics and techniques is well worth your while.”

6.DAY-TRADING IS A LONG-TERM COMMITMENT. “I fervently believe it takes several years to become a true professional”

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