- What if I misread the tape and I lose? (afraid to lose)
- When I enter it always goes “wrong”. (self fulfilling prophecy)
- I just want to make sure it’s the right decision, so wait for 1 more tick. (self doubt)
- I failed the trade before; what if I fail this trade too. (pattern repetition)
- I can’t be always “right”. (lost confidence)
- It can’t possibly go much higher/lower. (false psychic)
- I want to be sure before I commit. (wish to be always correct)
- Oh, look there’s another pop, now it’s too late. (resignation)
If you recognize yourself in of the above scenarios, you suffer from lack of conviction for which there is only one cure: Practice. There is nothing that builds confidence better than practice. But there is one element before practice that must also be done for a successful practice session: Homework.
Homework is the examination of each stock you pick for the day or week. Homework is deciding your entries and targets. This preparation is essential for success because the more you know the more ready you are to take the trade and have less doubt about it.
Happy Trading, Living and Dancing
The Daily Pick - FSLR