I desire to give cheers readers for fantabulous comments as well as perspectives on my recent post that addressed the interrogation of why trading is as well as thence difficult. In particular, I idea that Charles as well as Ziad identified a most of import issue: the trader's appointment amongst markets *between* trades.
To accept a pace back, if I were asked the question, "What makes trading as well as thence difficult?", my reply would echo the recent shift inwards one-sided days that I wrote about. When nosotros larn such shifts, traders who internalized the previous patterns (and, inwards this case, fade opening forcefulness or weakness) boot the bucket caught inwards the novel patterns as well as lose money. This is a major crusade of frustration inwards trading, as well as it is a major argue that successful traders tin rather speedily boot the bucket unsuccessful ones.
It is because of these changing cycles that traders demand to remain actively engaged amongst markets *between* trades. At whatever time, trends tin reverse, breakouts tin occur, markets tin boot the bucket quiet, etc. Only yesteryear next the market's emerging patterns tin traders promise to arrange to them as well as eventually profit. Charles provided an fantabulous instance inwards his comment to the post: because he is actively figuring out what the marketplace position is doing, he avoids what I called the "fireman" syndrome amidst traders, inwards which periods of boredom oscillate amongst periods of intense emotion as well as action.
Ziad makes the valuable indicate that i does non demand to approach the markets quantitatively to remain actively engaged. In my ain trading, for example, I remain engaged yesteryear watching unfolding stance (NYSE TICK, Market Delta), seeing how toll as well as book acquit at the edges of marketplace position ranges, as well as yesteryear seeing how markets correlated to my ain are behaving. The fourth dimension betwixt trades is never boring, because my involvement is captured yesteryear reading the emerging marketplace position patterns.
Herein lies the employment beneath the fire fighter syndrome: If the trader is to a greater extent than interested inwards trading than inwards agreement markets, the menstruum betwixt trades volition non hold upwards productive. That menstruum volition either hold upwards tiresome (which volition incite overtrading), or it volition hold upwards dominated yesteryear negative thinking close recent functioning (which volition coloring futurity determination making).
This is why structuring one's fourth dimension betwixt trades amongst processes to essay out markets--and to essay out oneself, when needed--is really helpful for trading. The mind, similar nature, abhors a vacuum. If nosotros aren't prepared amongst constructive activities betwixt trades, the remove heed volition latch onto non-constructive ones.
I strongly suspect that a reliable means to position a skilful trader is to discovery what he or she is doing *between* trades.
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