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Need To Trade!
By David Chandler
You don't HAVE to be trading.
As a novice trader, you'll often feel the need to trade.
You may be bored or frustrated. Or you just want to try a certain
type of trade.
STOP!
Realize that you don't have to be trading all the time to be
successful. In fact not trading is often the very best decision you
can make.
The market tells you when to trade. If you feel the urge to place a
trade or find yourself chasing a trade, walk away from the
computer. Better still; take the opportunity to meet a friend for
coffee.
The trades you do when you're feeling the "need" will usually be
lemons - and leave you with a very bitter taste in your mouth!
They will usually not have clear signals, but you've convinced
yourself they are there. After losing your premium, or much of it,
you'll look back and wonder how you could possibly have entered
that trade. It's happened to all of us, so don't be too hard on
yourself. Just don't do it again.
The market is going to do what the market is going to do, not what
you need or want it to do!
And remember the old saying, "If you can't see it, it's not there".
So if you stand back from your computer and the chart pattern or
signal doesn't jump out at you, it's not there.
Easy is Best
The novice is constantly staring at charts, looking for and often
inventing signals. If you have your strategy in place and you wait
for the patterns to form, your entry points will FEEL easy. They will
be obvious - you won't need to be searching for them.
Write It Down
Remember to keep a log book. We keep one, which includes any
potential trades - those which look like they will possibly provide
an entry in the near future. It's good to see if they eventually
develop into a trade. It will help guide you up to a point where
you make a decision whether to enter, or to leave it alone.
Also, when you enter a trade, log it in your book with a few details
and, commit to a stop loss point and a profit level where you will
be happy to exit the trade. Remember, don't be greedy - or you'll
see your premium reach that point, pass it and quickly drop back
past your original exit point. You'll then see how you would have
been happy to exit at your prescribed price!
Much of the time there won't be any trades for you to enter, so it
leaves you with plenty of spare time for gaining extra knowledge
and enjoying life. You probably won't trade more than a few times
a week. So, you can see, there's a lot of time to be analysing
charts - and feeling the NEED to trade. Be strong and disciplined!
We are not providing you with financial advice. We are simply
sharing with you what has and hasn't worked for us personally. If
you wish to trade or invest in the stock market you should obtain
advice from a registered licensed advisor.
About the Author
David Chandler
http://www.stockmarketgenie.com
For your FREE Stock Market Trading Mini Course:
"What The Wall Street Hot Shots Won't Tell You!" go to: http://www.stockmarketgenie.com
Article Source: http://www.simplysearch4it.com/article/6335.html
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| Some other articles by David Chandler | |
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