Tuesday, July 27, 2010

The Daily Note - A Little Less Talk

Too many traders saying too much can be distracting and demoralizing. Focus gets lost & trading becomes a chase.  That's when you should realize that there is no substitute for confidence. 

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.
 Confidence comes out of your own actions and not the ideas of others and like self-esteem, it cannot be awarded it can only be earned. So give yourself some credit and turn off the noise and not the knowledge that you have acquired. Trade your game then hone your skills. There is plenty of time for banter afterwards.




Happy Trading, Living and Dancing
Anni


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