Wednesday, August 26, 2020

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Trust The Trade-Six thoughts on learning to trust your trade.


Six thoughts on learning to trust your trade.

If (TTT) was a stock symbol most people would only short it. Why? How many times have you bailed on a trade that you were in only to watch it turn around and go in your favor? See (TTT) really is a short, because most people don’t trust their trade. Now what can we do about this? 

1.          Build Trust… Test it! Test your setup. Get to know it. Learn to love it. Live it! Spend time with it. Sleep with it. Treat it like your spouse or partner. How can you trust a setup that you do not know? 

2.          Easy Trust… The market only goes two ways. Up or down. How is it we have created a zillion indicators to try to predict only two directions. When you quit looking so hard to predict a move up or down, things become very easy.

3.          Repeatable Trust… Does your setup work every time? Or almost every time? Or do you just hope it does.

Let me give you a few examples of setups in everyday life.

1.          The Sun Rising

2.          Peanut butter and Jelly

3.          Pressing the accelerator in a car.

Each works every time, or almost. Your setup should be as reliable. If you can’t take your setup for granted like the 3 things above, find a new setup. (HA HA, my setup repeats itself so much, I find myself doing a happy dance, how about you). 

4.          Buy Trust…. Start with a trade size that is easy to trust. A size which you don’t care if the trade does not immediately go in your favor as long as it lines up with number 1 and you did not throw a dart at the market and hope for trust.


5. Real trust….. Why are you asking someone else about your trade? Quit looking for permission, quit watching the social networks for their opinion of your trade. It’s your trade, not theirs, trust it! Unless you have not done number 1. Ok, then its number 6.

 

5.          Stupid Trust…. Quit stressing out. When you are ruled emotionally by your trade, you will do stupid things like watching it reverse and go up without you.

 

I will tell you and this may sound weird, I have been trading my earnings setup for a while and it still takes my breath away. And when I look through my charts at night of trades I did not take, I find myself doing a happy dance, because I am in awe as to how well the trade setup has performed.

 

Find a trade setup you can trust every time and trade happy my friends.

 

Full disclosure – (TTT) is related to an ETF symbol, but you should get the point!

 

I am not a financial advisor and I do not make recommendations or suggestions of what you should buy. I only show you what I am buying.

 

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