Let’s talk about how we can develop patience in the market to not rush our trading process. In this post I am going to cover how you can best prepare yourself to never feel rushed into a trade. The fear of missing out on a investment can often lead to rushing into a deal too early.
The Start of the Day
When that Opening bell rings the market rushes to start to react to the news. For those living in the U.S. we get to start our morning by seeing how the market reacted in the foreign markets. The Asian market starts the day off and investment firms from Tokyo, Australia, Singapore all start to move their funds through the market.
In today’s day and age this all occurs at rapid speeds thanks to the internet allowing the flow of billions of dollars to occur all over world. As time goes on the London Market opens while much of the U.S. is still sleeping. The market with some of the largest trading volumes start their day moving another few billions of dollars through the market.
Finally the U.S. starts to wake up and coffee starts brewing resulting in business to start operating for the day. There are a plethora of events that all occur before we even open our eyes in the morning that play a role in the daily economics of our nations economy that is essential that we take into consideration.
You need time to digest all that info and be able to process the information accurately and without feeling rushed. Too often we wait until 30 min before the market opens to start doing our research and reading articles when that may not be enough time for you to accurately analyze the market.
For some maybe they have developed a system that allows them to streamline the analysis process. Although to gain this proficiency takes time and repetition. For those looking to gain proficiency it all starts with getting a head start.
You are never too young or too old to start investing in the market. Whatever age you are right now is the perfect time to start investing in yourself. Take the time to learn this skill that can be used for the rest of your life.
- Do not wait until you have a pre-determined amount of funds that you decided was needed to start investing…
- Do not wait until you have retired to start working on growing your capitol.
- Do not wait until your friend makes their first million from the market for your to decide its time to start investing.
Making the decision right now to embark on the journey to become a proficient investor who generates consistent income through the market based on the skills that you have developed.
Do The Research
Start your research process earlier than you would normally. Some people know that they are not able to wake up in the early morning to be able to research the market so they conduct their research the night before.
There is not wrong or right way to conduct your research and analysis. The most important aspect is that you give yourself enough time to be able to sift through the distracting headlines and focus on the tangible data and information.
We understand that early in the morning with the hundreds of headlines hitting the news feed it can often be overwhelming to sort through whats important and what is not. This is why we always recommend that our traders focus in on their strengths and do not spread themselves out too thin.
Sticking to your word will build the confidence levels not just in trading but also in yourself.
Narrow in your watch list to no more than 50 stocks ever! Even when we have a list of 50 stocks that we watch we are not watching every single one on a daily basis. We are planning out which stocks we are going to focus in on for the week or the day and we are going to narrow in our attention on those few select stocks as compared to watching the entire list 24/7.
The beauty of having a list allows you to stay consistent of a select amount of stocks while also having enough to keep you engaged.
Level of Confidence
Building your level of confidence in the market requires you to make agreements with yourself and keeping them. If you determine that after 12% gains you are going to close the position, then hold your word.
If you have set up a risk management level of 2% losses then stick to your rules and close the trade once you have lost 2% of your account value.
The more times you stay true to what you say you will do the more confidence you will gain in your trading. This simple rule not just is applicable to your trading but also your life as a whole. Having self confidence is key to becoming a successful investor.
Confidence in trading is build overtime and over accepting the failures along the way. Hiding and masking your losses will only ruin your self confidence in your trading and make you continue to repeat the same mistakes.
We often are blind by our own perception to not be able to see the mistakes we are making. Getting the perspective of another individual is a great resource for developing and working on your investing strategy.
The fear of missing out on a investment can often lead to rushing into a deal too early.
Let us work together and we can help discover the hidden obstacles that are holding you back from growing in your trading journey. Regardless if you feel that you are flooring on the gas petal if the emergency break is still on you will only bring internal conflict.
Schedule a coaching session today to be able to identify what is holding you back from accelerating on your trading journey.