07 May The Secret Weapon
We are often asked, “What is the secret indicator that will keep me from making stupid trading mistakes?” Having received this question by email just recently, it seemed an appropriate time to share the secret indicator. It does exist and we want to share it right now.
In all areas of life there is something that separates winners from losers, achievers from underachievers, and those that reach their goals from those that do not. The ability to plan ahead and not let emotional decision-making rule your life is something that allows people to excel in their personal relationships and in their professional lives. One of the most important and prevalent defining characteristics of people who achieve success in their lives is that they have patience. Patience is perhaps the MOST important habit that an E-Mini trader can develop. It is the patience to sit on your hands and wait for only the best trade setups that separates the winning traders from the losing traders.
Patience is the defining characteristic of what sets humans apart from all other species in the world. When we employ patience we are using the most advanced frontal-lobe area of our brains that is responsible for planning and forward-thinking, and when we employ emotion we are using the older and more primitive limbic system area of the brain which evolved for use in fight or flight situations.
Most Day Traders deserve the negative connotations associated with the job. Fast money, emotional, compulsive, volatile, etc. They do not think about 1 year from now or 2 years from now. Think about how you can build your trading account over the course of a year, not over the course of one day or one week. By slowing down and realizing that you need to have patience to trade only the most obvious setups and thus to not over-trade, you will inevitably build your account faster than if you enter numerous trades each day in a futile attempt to ‘force’ the market to make you money. You see, the market does not care about you, so you have to care about it by taking what it gives you and waiting until it shows you its cards by forming an obvious price action trading setup. If you can do this consistently for one year I promise you that your trading account will be larger than if you trade every day and over-analyze the markets for hours all day and night. Allow your trading edge to work in your favor by demonstrating patience.
At Trade Professor we frequently discuss the value of a trade journal. Recording the numbers is important but never forget the significance of noting the emotions felt during a trade. Patience can become your best asset through practice. Lets talk it about tomorrow in class. www.tradeprofessor.com