A lot of marketing professionals and trading “Experts” love to go on social media and brag all about the luxurious lifestyle that come with become a trader.
They talk about all the fancy cars, watches, beaches of Fiji and endless caviar. They talk about all the VIP tables they reserve at the night clubs and they talk about waking whenever they want and not having to listen to anyone but themselves.
A great portion of the Trading world is lead by egocentric narcissist who believe they are better than the investor next to them.
Then comes the other guy who bashes on the leader in the industry to claim they lack a certain trait and then proceed to share how they possess that skill which just places them right back in the same category of egocentric narcissist investor along side the other guy.
I feel it is necessary to take the time and cover some fundamental topics regarding trading. The charts and listening to new releases is the easy part. The hard part is being responsive to the market and not reactive. In this article I will go over a little bit over the difference between the two.
Understanding the lifetime of an investor and how to creating a sense of market toughness is essential in becoming a successful investor. .
Part of trading the market is knowing when to enter the market and when to stay out of the market. At first when my mentor told me this statement I was under the impression he was talking about the literal time of day.
I was believing there was a magical hour of the day that all the money is made and if I learned how to trade during this sweet spot in the market it would guarantee my success. I tried this for a while trying different routines and schedules and none of them really changed the way I was trading.
Then I start hearing from other successful traders that “you don’t have to trade everyday.” When I heard this I was confused and questioning how I could ever make a full time living off trading if I go days without trading. I had so many conflicting ideas that I really didn’t how to proceed.
When it comes to the right time you need to learn what is going to work out for your personally. This is a bit hard to give advice on being that well I do not know what is going to be the perfect trading time for you. My trading schedule my not work out with your trading schedule so its important to find what will work for you.
Some factors to keep in mind are what are your energy levels when you are trading? Are you wide awake with a fresh cup of joe with proper rest or are you up late starting to fall asleep setting up trades? Are you trading at a time where there are a lot of distractions such as family and other commitments or are those other distracts at bay giving you the ability to give all your attention to the market?
Many individuals come into the market reacting to what they hear from the news, friends, or even social media. Many times we take advice from individuals who are not qualified to provide insight and we buy into their opinions before making our own opinions. When you react to the market you allow for the market to decide your next move. You are acting impulsively based on the hype of the market and feeling as if you do not trade right now you will miss the move forever.
The Fear of Missing Out will Drive Investors Towards Reacting Impulsively
Finding the right trading time will depend on what factors will provide you with the ideal environment for maximizing your ability to respond to market moves. See catching the next market move doesn’t necessarily require you having a magic ball and predicting the next major reversal.
It requires placing yourself in a position where you are willing and able to respond to the desired market moves as they are occurring. If you are stressed with family situations and trying to cook dinner while also entertaining guest, maybe entering a trade isn’t the best idea.
Trading can be very mentally demanding and what I realized is that finding the right time to trade really meant understanding that my success in the market has a lot to do with how I am doing personally. If my mind is distracted then my trading will show it as compared to when I am focused.
Take your shot
The reality of it is that this is going to take time. Becoming an individual who is earns enough consistent income thorough the market to pay off all their bills and enjoy the quality of life they desire takes a great deal of time and effort.
Building the skill to be profitable trader is similiar to building the skill of becoming a professional basketball player.
It will require you to take countless practice shots before the game. Before you step out on the court in the game you need to practice your fundamentals. Dribbling the ball, passing and shooting the ball are the basics of the game you need to get those down to even play on the same court as everyone else. Then you can start learning lay-ups and how to take three point shots and you learn new skills to enhance on the ones you have learned already.
Trading is no difference. First you need to start practicing just entering and exiting trades. This is the basics just like being able to determine certain price levels in the market or draw trend lines. Then once we have those skills down we can work on building on those skills and learning new ways to enhance the quality of your game.
When you understand that trading is just a game that requires getting good at then you change your perspective on the event. Get yourself a good coach that is honest and calls you out on things you can improve on.
The road to being a successful investor is not as pretty as Instagram makes it look. Although with the right coach, strong team in place and great cheerleaders then winning the game becomes a whole lot easier.
If you are looking to join a team of investors who hold each other accountable and work towards improving our skills on a daily basis by working as a team then send me an email with your details and the email title TRADING TEAM and we will get back to you with more details.
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