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Walk the Line

respect-market-confidenceTrading is all about opportunities. Every day is filled with chances to ride a rally, short a selloff, or sit on the sidelines to protect your capital.

But there’s a very fine line to walk between having a fear or respect for what the market can take from you, and having the boldness and confidence to take a risk and get paid.

There are several keys to walking that line successfully, such as:

That last bullet is arguably more important than the others (although each are necessary), so let’s dig a bit deeper into it.  When I say don’t let your mind race too far ahead, I’m not referring to the productive foresight of anticipating a move [4] – that’s fine.  Rather, I’m referring to thinking habits whereby you’re focused on things which are not a present-tense reality.

These are the thoughts that have you counting on a gain before you’ve actually booked it, or fearfully racing for the exit at the first sign of your trade’s hesitation.  They’re destructive and damaging thought patterns, and they aren’t “on the line” we want to be walking.

In your trading, do you allow your mind to get ahead?  Are you able to stay objective [5]?  It’s an issue of self-control, and it absolutely impacts your trading results.

I’d love to give you a simple 3-step process to entirely eliminate any lack of discipline in your thought process, but the truth is it takes work.  It can’t be rushed [6].  Even your thought patterns are based upon habit [7].

Final word: commit to making some good decisions every day – no matter how small – knowing it’ll keep you right in the sweet spot between respecting the market and confident execution [8].

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast [9]

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