Tuesday, August 16, 2011
The Daily Note - Are You A Trader?
It's time to say it, and perhaps it's too late for some, but some traders should not be trading. Especially under current market conditions. These days can blow you wildly about and if you do not study the markets, the markets will gladly study you and take you out before you can say STOP. There are traders who ought to spend time analyzing why they are still trading. You know who you are.
You blame the situation, circumstances, timing, pricing, platforms, and whatever else which allow you to avoid looking at yourself. You refuse to take studying seriously, getting deeper into trouble and continuing to do the same moves, mistakes. Blaming others for your plight is not constructive. It's sad that you got into trouble, but most likely you got into trouble by not setting and following rules for yourself and if you do not examine your situation and take a serious analysis or your position, you will not come out well in the end.
So just start with a few steps:
1 Stop trading. Don't even look at a trade. Trading can be addictive. So be sure you can spend at least a week not trading. If you can't look away, you may have an addiction.
2 Look at all your past trades. Be honest. Who made you do them? Why did you take them, and if you didn't take profits when present, the most searching question can only be: Why is losing preferable to you?
3 Examine why you are really trading. Don't say money. That is a non answer here. There are many ways to earn money, so if you insist that you are trading to earn money, that is a lie because you don't lose money with most other occupations.
By taking the time to do the above three steps, you will be able to take a fourth one. A constructive one to lead you to become a trader if that is what you decided you truly wish to be. Realize that it's only the start but you will also realize it becomes more exciting because you are in control now.
4. Start writing trading rules for yourself. Go ahead write them all down that come to mind. There will be plenty of time to weed them down. First you have to recognize that there are many rules in this business and you need to find the ones that fit your personality and situation th best.
By doing these steps you are putting yourself in control of your actions, by becoming constructive rather than destructive of your self and your wealth. Trading is not for everyone, and not everyone is a trader; the sooner you realize it the better for you. Then, if you find yourself in the wrong place at the wrong time, you can gracefully depart to live a happier life as a result.
Happy Trading, Living and Dancing
The Daily Pick - DJIA
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Posted by Anni_V