WHEN YOU WANT TO BE IN THE MARKET ALL THE TIME, YOU’RE LOOKING FOR IMMEDIATE GRATIFICATION .
That’s not what trading is about. Click the Title to Read More….
So today I want to talk about the fact that you don’t have to be in the market. (or you can Watch the Video 15 mins)
Just because you are a trader, you don’t have to be in the market.
It is as great a testament to your abilities to trade being in the market and being out of the market.
It’s a good idea to everyday do your watch list.
Absolutely.
It’s good idea to keep the habit, keep the routine going, but avoid feeling compelled to be in the market.
A lot of traders say that to me, that there’s this overriding urge, like an itch that needs to be scratched to be in the market and you really don’t need to.
And I’ll tell you why we feel that way.
One of the reasons why we feel that we want to be in the market is, is a very strong shrunken time horizon.
And I talk about this a lot with traders.
So many traders are in the now – need results NOW and if you’re finding yourself compelled to be in the market and you don’t have a five year plan, or a six year plan? It will be even bigger..
What is your plan?
Again in the Tribe of Traders, we work to a five year plan.
So it takes the urgency out of being in the market now.
When you want to be in the market all the time, you’re looking for immediate gratification.
That’s not what trading is about.
Trading is the long game.
The best way I have of explaining success in trading is it’s the small things done consistently over time that has the biggest impact.
So actually I extracted that actually from Darren Hardy in one of his quotes from his book, The Compound Effect.
Great Book.
If you haven’t read it as a trader, you got to read it.
It’s the small things done consistently over time that has the greatest impact.
Now that means small things is trading correctly over time, has the biggest impact.
That implies that in the short term, there is no impact and that’s that’s appropriate for trading.
There is limited impact in the short term with trading.
It’s the things done consistently, the trades you take consistently over time that has the biggest impact, that compounds your account, that gives you your target in five years or however many years you set yourself for you’re trading journey.
It’s not going to happen today. It’s not going happen tomorrow.
So you don’t have to be in the market now.
You are the sum of the trades that you will take on the whole five year journey (or however many years you have as a target) and that is something that it’s a difficult concept for a lot of traders to grasp, but once you fully embrace – extending your time horizon around trading, it takes a lot of stress being in the market out.
Make Sense?
And at the end of the day, stress is the number one killer for successful trading.
So make sure you don’t do anything that creates stress, okay?
I always say to the guys in the Tribe, if you’re not feeling 100% confidence, certain when you want to place, when you’re going to place the trade, walk away.
Do not place the trade, because you’ll being driven by stress.
Now why is that bad?
If you’re driven by stress, you’re vibrating on a lower level, you’re in the fear zone or you’re in the fear of missing out zone.
You’re in those lower vibrations and that is not conducive to successful trading.
Feeling compelled to get in the market or be in the market all the time as well is also vibrating on a lower level, lower level of energy, so to speak.
So if you’re feeling compelled to being in the market and there’s like the market is not ideal.
You haven’t stacked the probabilities in your favor for the strategy you are trading, you’re operating out of fear of missing out.
You’ve operating out of a shrunken time horizon.
You’re operating out of some other emotion that’s driving you rather than inspiration.
If you are trading with inspiration, you will not have that compelling need to be in the market.
Does that make sense?
So just be mindful of each time you go to trade that, what is the state you’re in?
How are you feeling?
Are you feeling compelled to be in the market?
And if there’s any sense of that for you in your trading, just walk away.
It’s okay to walk away because what you will end up doing as well, the flip side of feeling compelled to be in the market and trying to find trades is there’s two things that will be happening.
One, you will be trying to curve fit your strategy to the market.
That is why if you are losing trades or you’ve lost a trade, you lost a second trade or a third trade, you need to be asking yourself three questions-
- One, is it me?
- Is it the market?
- Or is it the strategy?
Okay, so I’ll answer number three first.
If it’s the strategy, I would trust that you would have enough faith in the strategy that you know that it is consistently profitable.
For example, with BUGSY and POGO (the Tribe of Traders strategies), they have an average 83% success rate so you know that it’s not the strategy itself.
Okay?
If you understand the rules, you’re confident, you’ve tested it, you actually own the strategy, then it wouldn’t be the strategy.
The next question is, is it the market? What I mean by is it the market?
The market is what the market is. It does what it does, right?
So it’s a five trillion day, a moving machine.
There’s no ways you’re ever going to get power over that.
But when I say is it the market, what I mean is are you applying the right strategy for the market type.
Or are you trying to curve a trend based strategy into a ranging market, which is what that would be, that is one of the biggest mistakes that a lot of people will make causing drawdowns.
You’re putting the wrong strategy on the market type. Okay?
But at the end of the day, you’ve got to ask yourself why you are you doing that because that essentially comes back to YOU.
Which was what the first question, Is it me. It comes back to you.
Why are you feeling compelled enough to be in the market even though the market is not appropriate for the strategy that you’re trading?
So at the end of the day it all comes back to you.
So you need to be aware of how are you feeling about being in a market?
Are you feeling compelled?
And that is an alarm that needs to go off and say, well why am I feeling compelled to be in the market?
Sure, you might not have reached your target yet.
That’s okay.
As I said, your trading journey is not summed up by where you’re at right now.
It’s summed up over the time of which you set yourself a target.
Make Sense?
Today is not going to make or break your target in five years.
That’s the important thing to understand is today is not going to make or break it.
Being out of the market today is going to, most likely, if you are feeling compelled to be in the market and you make the decision, I’m not going to be in the market, that is more likely what’s going to get you to your target in five years than being in the market, having felt compelled to be in it because you’re afraid of missing out.
That’s the thing about trading.
That’s why I say it’s the gift that keeps on giving because we have to be so aware of our mind, what our mindset is, what we’re thinking, what our beliefs are.
And the more aware we are, the more conscious we are about hows and whys we are trading, the more successful we will be.
And it builds up a habit. It builds up to a habit in our trading that actually infiltrates our life and the more conscious we are in our life and the more aware of what we’re doing and how we’re doing it and why we’re doing what we do in life, the greater the growth and the greater the results we will get.
And that is why I love trading so much because it’s the gift that keeps on giving.
It keeps me aware of what’s going on for me in my life, not just in trading because you have to be so aware of yourself for successful trading.
The super traders of the world, there’s no mistake that they are deeply spiritual people.
I’m talking about the super traders, the traders that make vast sums of money and continue to trade well into their 80s and beyond.
They’re deeply spiritual people.
And that comes with being aware of yourself.
Being aware of what is driving your actions, was driving your emotions and not just blindly reacting to just stuff that’s coming up for yourself.
Blindly reacting to this drive to be in the market or to try and curve fit your strategy into a market that’s not appropriate.
If you’re feeling compelled to be in the market, and month end is looming, you haven’t quite got your target that’s an alarm that needs to go off for you because there’s, that’s very wrong reason to be in the market, feeling compelled because you’re likely to try and curve fit your strategy.
You’re likely to overtrade.
You’re likely to gamble, likely to hope trade.
You’re likely to be in stress.
All of the components which are a disaster for trading.
Okay?
And at the end of the day, the chances are by being aware of the fact that you are feeling compelled to be in the market and letting that be an alarm bell that goes off for you and saying, okay, I am not going to be in the market and being okay with it –
That is going to take you to your goal way quicker than any trade you’re going to put on this week.
So remember, your results are not driven by what you do just today being in or out of the market.
Your results are driven by what you’re doing consistently over time and just like your account compounds so does your habit, so does your behavior compound.
Establish really good habits around your trading.
They will compound just like your account will compound.
It’s the small things done consistently over time that has the biggest impact.
And remember successful trading is not just about placing trades, it’s about trading in a certain way.
And as I say that certain way is modeling the Genius Trading Model.
Just treat it as a business, you’re a money manager first, and a trader a second, and you must master one strategy at a time.
Want to find out more about the 3 secrets that are NOT taught in the industry that will make you A SUCCESSFUL TRADER???? Click here…..
