Tackle Today: War Between Patience and Action
March 9, 2021
≈ Mental Battle≈
Traders,
There is a constant battle that rages within us traders. That battle is between being patient and taking action so that the markets “dunneth” run us over. So, the eternal question is when do we move and when do we stand pat? Another way of saying this comes from our buddy Kenny Rogers, yes, the chicken guy, you got to know when to hold and know when to fold em.
If one has been trading for anything length of time then one has probably heard that procrastination will kill a trading account faster than a cheetah on a wildebeest! This is true a lot of the time but on the other hand we have another fella that was pretty successful at trading, namely Jesse Livermore, and he famously said “it was never my thinking that made me money, it was always my sitting!” So, who is right and how do know when to fold em or when to hold em?
The key to knowing when to sit and when to go is to take a couple of things that Livermore said and combine them. We have to do all our thinking before we do the actual trading and then we need to sit once we get into the trade. The thinking we need to do is to figure out what the rules are that we need to use in the trade and define the parameters of the trade and then come up with a plan for the trade from start to finish including entering the trade, exiting the trade and how big of a position we want to take. Once we have all these things thought through then we can go from thinking to sitting on our hands which is where the money is made.
So, if you want to win the battle that rages in the head of every trader then you have to act like a professional trader and make sure you do all thinking before the trading!
#TeamTackle
Chart of the Day
Steel Dynamics Daily Chart
Steel Dynamics Inc (Ticker: STLD) was a recent bullish trading candidate from our stock report. The stock broke out of its high base pattern at $45 and has made a nice move to the upside. If you got into the trade on Friday during the breakout then you are sitting on a small profit and now your only job is to adjust your stops according to the plan you came up with before putting the trade on.
Video of the Day
Probability of Touch
Matt and Tim Teach the Delta Probability of Touch and how traders should use it to their advantage.
Today’s line up
Traders Lounge 11 AM EST
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The Coaches Show 8:30 PM EST
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Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
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