Sunday, September 26, 2021

Trading With Clarity

 

It has become clear to me that clarity underlies my best trading.

If I sit and sit and watch and watch and process and process what the market is doing, eventually it will become clear what is going on.  I can see that sellers are active and cannot push price lower; I can see that fresh market participants have entered the market at price levels making it unlikely we will return to those prices.  I can see a rotational trade between market sectors; I can see when volume and volatility are so low that sustained directional moves are unlikely.

It isn't just patience; it's immersing myself in the market information I understand and letting the market tell its story.  It's the same thing I do as a psychologist.  When I first meet a person, I have no clue what they're going through, so I listen and listen and ask questions and eventually clarity hits.  Success as a psychologist requires comfort with that initial cluelessness.  

For the curious, there is joy in discovery.  For the incurious, there are confirmation biases and attempts to impose "conviction" on markets.  Clarity allows ideas to come to us.  No ego-based needs to project our views onto markets can yield clarity or understanding.  It wouldn't work for me as a psychologist and, for the same reason, it fails in trading.

Further Resources:

How We Can Improve Our Access To Intuition

Awareness and Acceptance in Trading

Three Minute Trading Coach Video:  Creating Purpose In Our Trading

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