The market is a tough battle. Each day there are chances and opportunities to make money though, it is the greatest form of free market capitalism known to man. It’s a vast ocean with treasures; we just have to be able to unearth them at the right moment. We have the ability to navigate carefully through markets, put our bets out there and see where the chips fall.
But if we are too loose with our capital then we are headed for a bad ending. Discipline is one of the keys to success: learn your craft and practice. Each day that passes is one more great learning experience – capture it, analyze it and grow from it. Use a trading system, pay attention to the timeless patterns of price/volume and believe in what you see and not what you hear.
Patience is the biggest virtue in trading, yet many are unwilling to wait. When capital is at risk we don’t want the negative outcome, right? However, I’ve often found the best wins are when we exercise the patience into a trade – much different than when one goes violently against us. In that case, just move on.
Can you feel the frustration? Oh, you are expecting something to happen to the market? Perhaps a correction, or at least a pullback for a buying opportunity….maybe something more than that? When the market doesn’t ‘do’ what you want or when you want it gets annoying. Perhaps the greatest angst is felt when others are making money trading while you just sit there wondering to yourself when this will ever end.
Well, that frustration can/will last longer than you hope for, and when the screws turn a bit tighter you’ll realize it’s time to throw up your hands and give in to the crowd – probably just at the wrong moment. I prefer to let the market tell me the direction and how to proceed. It’s not a trick, rather following the charts and technicals rather than listening to the irrational speak of opinion. I’ve read lately so many blogs, articles and tweets calling for the ‘big one’, and correction this or pullback that. Fine, bring it on…yet, I’ll let the MARKET tell me rather than the ‘one timers’.
Remember, a broken clock is right twice a day – can you afford to wait for your moment?
Senior Market Strategist