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Traders: When to be Flexible & when to be Rigid

  
  Education
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  1. raders should have a very flexible mindset about which way a trade can go when they enter it, but be very rigid about taking their stop loss when it is hit.
  2. Traders should be very flexible on profit expectations during each market cycle but very rigid about following their robust method during each cycle.
  3. Traders must be very flexible about allowing a winner to run but very rigid on cutting losses short.
  4. Traders must be flexible about their opinions and change them when proven wrong but they must be rigid about their risk management and never risk more than planned.
  5. Traders should be flexible about their watch list but rigid about their trading plan.
  6. Traders should be flexible about what will happen next in the market but rigid about their rules.
  7. Traders should be flexible about the direction of the trend when it changes but rigid about positions sizing.
  8. Traders should be flexible about profit targets but rigid about entering with a minimum risk/reward plan.
  9. Trades should be flexible about entries and exits as the market action develops but rigid about managing the risk of ruin at all times.
  10. Traders should be flexible about expectations on when they will have a huge winning streak that will change their financial lives but rigidly pursue success in the markets until it does happen.

A GLASS OF WATER

  
  Education
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A young lady confidently walked around the room with a raised glass of water while leading and explaining stress management to an audience.  Everyone just knew she was going to ask the oft repeated question, ‘half empty or half full?’   But she fooled them all…

“How heavy is this glass of water?” she inquired with a smile.

Answers called out ranged from 8 oz. to 20 oz.

She replied, “The absolute weight doesn’t matter. It depends on how long I hold it. If I hold it for a minute, that’s not a problem. If I hold it for an hour, I’ll have an ache in my right arm. If I hold it for a day, you’ll have to call an ambulance. In each case it’s the same weight,but the longer I hold it, the heavier it becomes.”  She continued, “and that’s the way it is with stress. If we carry our burdens all the time sooner or later, as the burden becomes increasingly heavy, we won’t be able to carry on.”

“As with the glass of water, you have to put it down for a while and rest before holding it again. When we’re refreshed, we can carry on with the burden – holding stress longer and better each time practiced. So, as early in the evening as you can, put all your burdens down.  Don’t carry them through the evening and into the night… pick them up tomorrow. Whatever burdens you’re carrying now, let them down for a moment. Relax, pick them up later after you’ve rested. Life is short.” (more…)

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