The problem is too many traders confuse confidence with consensus: thinking that if others agree, than it must be right or okay to buy/short "xyz" company. Often finding that not everyone can be right all the time, and that perhaps it was better to listen to the "gut" than to "listen" to Twitter. Remember there are always good ideas out there but if your whole day is spent on chasing them, consider signing yourself out of "trader" status.
It is really important to lower the interference and raise the focus when trading. If you are well prepared as a trader, you need to stick with your plan and not be distracted by other ideas. These rules may help:
- If you find that you are distracted by posts, turn off the site, hide it or make it mute.
- Save the learning for non trading hours; that is, when you are not in the middle of a trade or looking for a new one
- Make it a rule to check out an idea you find interesting. Ideas, that are good and your style can adapt, are just as good after you tested them.
Happy Trading, Living and Dancing
The Daily Pick - VNO
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