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Wednesday, July 7, 2010

All Traders Must Read


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.

But you can create a Master Plan for your Trading Success

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 trading.

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