Sunday, September 25, 2016

The Mistake Traders Make When They're Not Making Money

There are those that follow their hearts when they trade.

There are those that lead with their brains.

One trades based upon seeing patterns play out in real time and having a feeling for those patterns.

The other trades based upon analyses and having an understanding of how markets should respond.

Both styles require an ability to tune out noise and focus on what is important.  Both styles require an ability to act on the information being processed.

When we don't see opportunities, it can be tempting to look to others for answers: to see what patterns they are noticing, to check out their analyses.  At that point, we become externally focused, no longer attuned to our own information processing strengths.

In challenging times, the challenge is to double down on our strengths and become more of who we already are at our best.  Looking outside ourselves for answers is the surest strategy for turning drawdowns into slumps.

Further Reading:  The Two Brains of Trading