Trading Tip #3 – If You Hear the Word “Hope”
THERE IS NO HOPE IN TRADING. It is like I tell my executive coaching clients who trade – If your thoughts keep returning to “I hope it goes up” or “I hope it goes down”, GET OUT!!! Get flat and take another look at your view of the market. Hope is on a date with an old friend of mine and, trust me, it is not going well. Too many traders are concerned about being flat and missing part of the trades. Don’t be. You can always get back in. No one catches every part of a trade. Being flat is the best and only way to think clearly, even if its just for a moment. How many of you have been crushed in a down move by hoping the market would go back up or saying “ this market has to bounce“? The most important thing about understanding market movements is that the market doesn’t have to do anything. No one is bigger or smarter than the market, and if you think you are, in time you will be carried out like so many traders before you that you never heard about.
Yes, there will be times that you get out of a trade and – the moment you do – the market will go your way. DO NOT WASTE YOUR TIME GETTING UPSET. I have a lecture named “[email protected]*ng Up and How to Deal with It”, and this is for not only for traders, but for everyone – because the simple and true fact is that everyone [email protected] up.
Traders need to understand that when I traded on the floor, almost 60% of my trades were bad trades. I could have sat on my butt and kicked the crap out of myself, but if I did, I would have missed so many good trades. So, if you get out and the market goes you’re way, don’t spend more then a second getting pissed. Just step back in.
I will explain more in Trading tip #4 – Being Able to Admit When Your Wrong …. coming soon.