You need to trust yourself as a trader. It’s something that even I, as a market veteran, sometimes forget. When I say “trust yourself,” I don’t mean that you should just “go with your gut” or fly by the seat of your pants. That’s a guaranteed way to find yourself with a big, red zero in your account.
You need to have strategies that you know you can rely on; then you need to follow through on those strategies. You need to trust that they work, and not let the fear or greed of the moment take you off course. Situations change, and trades need to be managed, but often the decision you had made before you entered the trade is one least clouded by emotion.
Here’s an example. I was in $WATT at $13, trading a class flag pattern. One of the best things about flags like this is that they provide a clear stop loss point – the trendline. I knew this, of course, as I’ve traded flags more times than I can count. But I let impatience get the better of me, and sold out at $12.90.
Small loss, no big deal, right? $WATT went on to $19! That’s an almost 50% increase from my buy price. My impatience got the better of me; if I’d stuck to my original plan, which has worked so many times, this small loss would have been a huge gain. I lacked trust in my strategy.
Of course, you need to have strategies that you trust. Strategies you’ve been taught by someone who has mastered them. If you don’t have those reliable strategies or the ones you do have aren’t working for you, then check out my upcoming class. It’s running on September 26th, 27th, 29th, and October 2nd. I’ll go over all of my strategies: how I trade them, what market environments they work best in, and how to scan for them. It’s only $599 to learn strategies you’ll use for the rest of your life. If you have questions or want to signup, email me at firstname.lastname@example.org