the most successful traders..
…are patient with winning trades and enormously IMpatient with losing trades
Lesson: Trust your rules and (non-emotional) pre-trade analysis and have rules to close losing trades quickly! This will allow you to focus on your next trade.
.. know that making money is more important than being right! “I am wrong more than I am right, but I still make money”
Lesson: Detach your ego. The outcome of the trade is determined by a random series of wins and losses. Only if you have an edge, which you must believe in, and if you execute your trades flawlessly, will you come out profitably. If you don’t understand this, get in touch with me.
..use technical analysis as a tool to see where amateurs are lining up
Lesson: Some zones on a chart are just a “grocery store check out line”. You wanna know where people are lining up. MACD cross, CCI OB/OS that kind of stuff. This is where the stops will be run and that is the best place to get into a trade. The best trader become the cashier and sell/buy to them to fill their stops.
… know where they will exit BEFORE they get into a trade. Both targets and stops! Don’t take it otherwise
Lesson: They approach the 5th trade with EXACTLY the same mindset they did with the 4 previous losing trades. (Confidence in your strategy & every moment is unique)
They use clear charts! Maybe with 1 or 2 indicator)
Lesson: take away the noise and get into your trading zone, where you excel!
…realised a long time ago that being comfortable trading is ok
Lesson: The best know that you cannot stop it. Even after 20 years..
…found a market that fit their style and personality
Lesson: You want to find the one that you are least uncomfortable with and get great at it.
…stopped trying to pick tops and bottoms a long time ago
Lesson: Trade with the market!
…stopped thinking about the markets as being cheap or expensive
Lesson: BUT, will people pay more or less for it in 10minutes/30minutes? Just think about how people will be lining up, look for the pattern, but only if it fits your edge.