Monday, July 12, 2010

The Daily Note - So Why Didn't You Bite?

Ever watch a trade go by, then wonder why? I am still amazed how often it happens even if it's just seconds that go by as I realize I did it again. Oh, I can see the tape and see the potential trade, yet not always do I “bite”. Do you ever wonder why you don’t? I have my reasons, do you have yours? Am I in doubt? If I am what about? Let’s see if I can list them:

  • 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    

©DayTrading with Anni 2010  All Rights Reserved

1 comment:

IQ_0 said...


I can recognize myself with each one on the above mentioned list, why I don't bite. A long journey of learning for me to do the homework. One renowned quote comes to my mind,

"My People Perish For Lack of Knowledge. . . . . . "