Never Force It

One of the lasting lessons my Dad taught me in golf was “never force it into the wind.” Growing up in Oklahoma and then playing college golf in west Texas, I can tell you that I’ve played a lot of golf in the wind. Headwinds tend to compound your errors by accelerating the spin on the ball, so what might normally be a slightly errant shot will often end up way off line into the wind.

Similarly, the market tends to compound our errors when we get too active under suboptimal conditions. Overtrading in a choppy market easily leads to poor performance, so the idea is to never force trades if they aren’t there. At some point, you’ll find a tailwind in the market which makes your strategy easier, and that’s the time you’ll want to be more aggressive.

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Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com

[tags]Trading, Trading Psychology, Golf[/tags]

http://www.thestockbandit.net/2006/09/29/slow-drift/ TheStockBandit.net » The Slow Drift

[...] I’ve been trading the long side heavily and am still positioned long, but it’s a good time to be patient with adding new trades here on a Friday at the end of the quarter. Don’t force trades if they aren’t there. Once we see a rest there should be plenty of new opportunities arise, but until then the best bet is probably to stay long if you’re already in or stand aside if you’re sitting on cash. [...]
http://www.thestockbandit.net/2006/12/07/big-button-trade/ TheStockBandit.net » Pressing the Big Button

[...] Of course, there are times when going big is the wrong thing to do. I’ve talked before about when to trade aggressively, when to lighten up, and that you should never force trades. Those all still hold true, but when it comes to pressing the big button you’ve got to be sure your head is in the game. Do NOT go big if: [...]
http://www.thestockbandit.net/2007/11/21/waiting-on-the-market/ What It Means To Wait On The Market | TheStockBandit.net

[...] Waiting on the market means that you don’t go hunting excessively to find a good trade. It means you do your homework and take what the market gives. I’ve found that when I have to dig and dig to find a trade that it’s usually not worth taking. The best trading periods offer up plenty of opportunities for entries and new trading ideas, so when you’re not seeing what you like don’t force it. [...]
http://www.thestockbandit.net/2008/05/22/patient-progress/ Patient Progress | TheStockBandit.net

[...] So as you proceed down the path in search of profits, remember to be patient with yourself. Take it slow if you’re just starting out, and don’t force trades, especially if you don’t have a defined trading plan or method. Preserving your trading capital so that you can stay in the game is your number 1 priority if you’re going to find success in this game. [...]