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!
David Chandler
Ordinary People Making Extraordinary Profits!
For free mini-course on stock and options trading click the following link:
http://www.stockmarketgenie.com
Or visit our blog at:
http://www.stockmarketgenie.com
The above comments are offered for educational purposes only. 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.
executive chauffeured services Bradford .. Madison to Airport carEver jumped out of an airplane? It's OK if you... Read More
Did you run out to buy that duct tape yet?... Read More
What does it take to be a stock trader? It... Read More
THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More
Ever have one of those sample boxes of candy? Each... Read More
Many people would like to diversify their portfolios to expand... Read More
All stock trading and investing methods must deal with the... Read More
Today we are inundated with tons of information about the... Read More
Do you have a financial planner? Does one of your... Read More
Several times each month I am solicited by various market... Read More
The thinking process of the brain relating to the... Read More
For some "long term" would mean holding a stock position... Read More
The date October 13, 2000 will forever be embedded in... Read More
As a novice trader, you'll often feel the need to... Read More
This is an extract of an article which was first... Read More
There are major differences between trading stocks and trading futures.... Read More
Recently I watched my favorite football team lose a vital... Read More
Is really not as important as to how you invest... Read More
Just 30 years ago the stock market was a shadow... Read More
The recent criminal fiasco in the mutual fund industry is... Read More
Wall Street's watchword has always been diversification, but what does... Read More
Look back over the years and try to remember how... Read More
Fundamental analysis.Fundamentals analysis says the best way to predict the... Read More
When will the stock market stop going down and start... Read More
I have watched my cat play with a bag of... Read More
O'Hare Chicago prom limo ..Inverted interest rates? What's that? Who cares? Even if you... Read More
It is difficult to make money in a bull market,... Read More
If you are a baby boomer, time is not on... Read More
I feel that an investment strategy in the stock market... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
Recently I watched my favorite football team lose a vital... Read More
How is it possible that trash Companies are posting less... Read More
An insane person cannot evaluate an insane evaluation system.As you... Read More
I know there are a lot of you out there... Read More
We all know that emotions control every decision that an... Read More
We are already in it, but you can't see it.... Read More
Do you own any mutual funds? In an IRA or... Read More
It is wonderful to be alive in the information age.... Read More
Do you have a financial planner? Does one of your... Read More
Why? Because I am going to shatter your conventional wisdom... Read More
On November 17 I bought 7 different mutual funds and... Read More
Professional stock options traders use the term lean to refer... Read More
There are many good penny stock investments available, which could... Read More
To become a successful trader you must have some kind... Read More
When we go to the circus we see a trapeze... Read More
The stock market has not been very kind to your... Read More
It seems that every day I turn on the TV... Read More
Disclaimer: Please note that I do not necessarily purchase, own,... Read More
If you're a normal human being, your need to feel... Read More
No, this is not a symbol for some Latin number.... Read More
Stocks & Mutual Fund |