Sunday, October 27, 2013

The Weekly Outlook ~ A Trader's Motto ~ $SPX $NDX $DJIA

*****Perhaps traders could use a lesson from Arthur Ashe, winner of 3 Grand Slam tennis titles, who said: "Start where you are. Use what you have. Do what you can. " A great philosophy to live by and could be motto for everyone and not just traders.

Many traders get into this business and start trading with the thought that it will be an easy road to wealth; a way to make up what they have perhaps not done before, like saving for the future. Many of get into this business thinking that we have no other option due to loss of job or ability to work;  and I'm sure that many start trading out of sheer boredom, having no other hobbies, as I also think that many people become traders because of their love of the "game". It makes no difference why we start the journey the important part is that we keep our wits about us. Reasons make no difference about the results but the approach does. Those who get into trading thinking that it's fast money will burn out faster than those who get into trading with caution, but no one will be saved without the practice of the above motto.

First, we have to start with where we are; which really applies to getting to know your tools and how you need to use them in order to have good trading execution and results.  There are people who've done this before you, so take lessons, read, and get a mentor or coach if you need it, because, your intelligence is a tool.

Second, we have to use what we have; which means no borrowed money and no money that is needed to keep up our standard of living. Only we can control our own debt ceiling.

Third, do what you can. Meaning apply yourself and what you learned, and practice it. We need to constantly keep up with the exercise of trading. We cannot slouch off or get comfortable and expect to get back in with the same knowledge as we left.  Learning is constant so keep constantly learning.

Markets change from day to day and if we apply this motto daily, we will more likely stay with our plan and not over-trade or extend ourselves to the point of high expectations and low return.

Learn to Live by Darius Rucker on Grooveshark

Happy Trading, Living and Dancing

The Weekly Outlook- $SPX $NDX $DJIA  

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