Friday, March 04, 2016

Trading Meditation: The Early Bird Gets The Profits


Hesitation gets you nowhere. It is linked to fear and fear guides traders to the poor house.

But Paul, I want confirmation.

No, you are just afraid. So you wait. For the safety of the move.

Seeing the stock move feels safe. So you act. And now you lose.

That is because once the move comes, once you feel safe, the trade is almost over. You enter at the worst time.

You are in "no man's land" caught in between support and resistance levels.

You'll either make a small profit, or take a big loss. Or a lot of small losses. All of these are negative outcomes in this case because the big wins will rarely come, since you gave up so much waiting for confirmation.

Do not hesitate. Previous encounters with the pattern have already confirmed you have an edge. Enter at the exact moment pattern recognition give you the signal.

Be decisive.

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2 comments:

Sunil Bawa said...

Well said. Really enjoyed reading this.

Sunil Bawa said...

Well said. Really enjoyed reading this.