You can count on “the other guy” to do the wrong thing most of the time.
Click here to get your free copy of The Inner Voice of Trading audiobook
So let’s say you get five signals. You don’t know which one to take. Will you take all of them with the requisite amount of risk that you’re willing to take, then you let the market activity unfold. The market will tell you which one’s going to be the best one. You can count on it.
So if you’re taking it home with you, you have your protective stops, whether you’re trading off of a reversal, or whether you’re doing some kind of swing trading technique, or whether you’re trailing with ATR or whether you’re trailing with structure, there’s a whole bunch of ways you can offset winners which are hard to visualize on an audio only format.
So I’m not going to get into it here, but the market will unfold accordingly in ways that you can maybe predict – maybe you can’t. But the point is that if you sit on your hands and let the auction process work, the market will let the individual name one of the five, maybe even two of the five, raise their hand and say, I’m the biggest winner.
Now, maybe you’ll be lucky enough to say, Hey, that was the one that I was going with. But you don’t know. There were times when in the mid 2000s, when China was buying up as much of the commodity markets that you could possibly get, you’d get signals on the same day in tin, zinc, nickel, high-grade, silver, and gold.
And you’d be sitting there saying I got the entire metal complex is firing longs, which ones do I take?
What do you think you should do?
Click here to get your free copy of The Inner Voice of Trading audiobook
Focusing on your process can keep you placated as we said yesterday.
It can also help you improve your attitude.
When you’re not chasing your tail or going outside the boundaries of your trading rules, you’re conserving a great deal of energy.
When you don’t react, you develop of quiet sense of confidence about you.
It doesn’t mean you’re infallible, but you’re in control.
You can take that feeling of being in control of your behavior and repurpose it.
Then it begins to compound.
Day after day, week after week – after a few months you can look back and see an change in yourself.
Click here to get your free copy of The Inner Voice of Trading audiobook.
Focusing on your process can keep you placated.
It can also help prevent you from getting too emotionally invested in an outcome that you don’t have any control over.
This is good advice and something that can help in life also.
We talked about having an expectation about a trade that you’ve been stalking for several weeks.
One where you saw the set up a mile away, yet it reversed in your face.
I’ve learned the hard way that such expectations have built in disappointments.
When you focus on the process you go to bed at night having done your best – and that’s all you can do.
You’re powerless over where the markets go.
Click here to get your free copy of The Inner Voice of Trading audiobook.
What parts of your process can you delegate and even improve your results?
You can learn to trade and make money without being there.
Click here to get your free copy of The Inner Voice of Trading audiobook.