You need to treat journaling as a fundamental step in your data and behavior analysis to help you succeed.
Here is the biggest lesson I’ve learned to transform myself in trading in the year 2020.
Every election is special with our political system and I am at awe with our current election, where every vote counts – literally. With all the uncertainty, one thing is certain. This election will take longer than others to confirm. So, what do you do as a trader?
One of the biggest lessons I have learned in the last couple years is that technical trend is EVERYTHING. It supersedes all the news, all the strategies and all the fundamentals. It really can be as simple as reading the trend on the chart that is going to make or break your portfolio.
Can I be blunt and tell you that the market does not have to make sense to you. It does not have to make sense to any of us. Even the smartest human cannot make sense of it, so let your brain take a break and just accept it as a chart analyst. Trade the chart guys. There is no other answer. None of us really know what is going on or what’s going to happen. The only thing left is price action. So, let price action be the king and follow the trend.
The most foundational skill of smart money is the ability to separate their bias, emotions and opinions from their data driven analysis.
Everyone has a different approach, system and rules that works for them. What’s important is for you to know what works for you on a consistent and evolving basis.
The month of February 2020 has been a very volatile month and if you are in pain, you are clearly NOT emotionally aligned with the cost structure of your portfolio.
What is it like to trade like YOU DON’T KNOW? Quite liberating, actually.
You will always react emotionally because you are human, but the key to better trading is to catch yourself at that emotional moment and change course to align to better judgment. Continue reading.
The way I view wealth has also evolved this year. Instead of focusing on gains and losses. I learned the lesson to not over trade, over-manage and overreact. Wealth is not something I need to chase after. It will come to me naturally when a systematic approach is executed consistently.
You must realize, you are enough. You are the one accountable. No one else answers to your life. There is no other better creator of wealth than you.