Sunday, July 24, 2016

The market doesn’t care if you’re a bear or a bull. It doesn’t care if you think it’s oversold or undervalued. It doesn’t care about your fundamental analysis or your charting skills. The market will do what the market will do, with or without you. You are not in control.

Accept It

One of the worst things you can do is a trader is to start to feel like you’ve lost control of the market.  You should never feel that way because you never had control in the first place.  You can have all the indicators in the world telling you to buy only to enter the trade and have it immediately go against you.  Accept it, you are not in control.

Ego

Sometimes you let your ego get the best of you.  It happens to the best of us.  You make a few great trades and you feel like you’re running the market.  Inevitably though, the market will give you a brutal lesson in humility.  It is up to you whether or not you get your ego back in check and persevere.  Always remember, you are not in control.

What Can You Control?

The only thing you can control is yourself. You can not control the market, but more importantly, the market can not control you. Only you control when you enter and exit the market.

Entry

You control your entry. The market can not pull you into a trade. As much as it seems like a stock is screaming at you to make a trade, it can not pull the trigger for you. You enter when your predetermined entry criteria have been met, not when the market tells you to. Now, you are in control.

Exit

You know the saying “plan the trade and trade the plan,” and that includes a planned exit on a failed trade.  You have spent countless hours honing your trading skills.  You know the set-ups you are looking for and you enter trades based on these set-ups.  If that set-up fails, you have to punch the eject button.  You take the loss and you move on.  Losing is a part of trading; accept it.  Once again, you are in control.

The market doesn’t give a shit about you.  It will exist whether or not you do.  On the other hand, as a trader, without the market you are nothing.  You are essentially a parasite and the market is your gracious host.  A host organism will learn to fight off and destroy harmful parasites, but it will allow useful ones to coexist.  Learn to accept what you can and can’t control and harmonize with your host and you will have a long and happy life of day trading.

Original Publish Date: Sep, 17, 2009 | Updated: After that

Ads by Google

{ 18 comments }

Day Trading For Dummies

Day Trading for Dummies is a follow-up to my post titled “How to Read Stock Charts for Dummies.”  You see, people have a habit of overcomplicating things that are very simple and easy to understand.  I think this gives people an excuse to fail, honestly. I mean, if you make something so complicated that you […]

How To Read Stock Charts for Dummies

how to read stock charts, stock charts for dummies, day trading, day trading strategies

You seem to think chart analysis is a lot more difficult than it really is.  Instead of giving it a go on your own, you rely on the wisdom of us brilliant chartists to hand you money-making set-ups on your favorite stocks. I am here to tell you, friend, that it’s not that difficult to […]

WD Gann: A Founding Father of Modern Day Trading Methods

Every successful trader knows that at one point in his career, he, too, was an apprentice, and if it were not for the wisdom passed along by his respective mentor, he may not have enjoyed the measure of success that he has presently achieved. However, we rarely pay homage to the pioneers of our trade, […]

Day Trading Penny Stocks

Day trading penny stocks can be pretty risky.  It holds the same risk as any form of day trading, but penny stocks have the additional traits of being thinly traded, extremely volatile, and easily manipulated.  Sometimes this manipulation is easy to spot, and you can actually trade in the opposite direction of the manipulation (usually shorting […]