When it comes to trading in the stock market, it is much better to be bored as a teenager without a phone and wealthy than hyped and broke.
There will be times when QiT open trades do not fill and you will want to jump ship because it is so boring. But if you think of the stock market as your own personal casino you probably won’t be trading next year. If you want to be filled with excitement and emotion during the process, you won’t get that at QiT.
Trying to guess which stock to buy and when is like playing roulette in Las Vegas, you may hit the jackpot once in a while and we all know how exciting can be. But it’s a safe bet over the long run that the house (the market) will win. Trading with QiT may be a bit boring in comparison to a two day trip to Las Vegas, but the overall rewards of long-term financial gains will always outweigh the short-term excitement of financial risk.
It’s not about Market Analysis
However, even if you trade with a proven system, you can still take a ride on the proverbial emotional roller coaster. What I’m attempting in my blogs is to give you a ticket to get OFF the roller coaster.
Since very few people who decide to trade take the time or expend the effort to understand what it takes to be a trader, they do not adapt to this new way of thinking and subsequently fail. Many, probably most, individuals who start trading reason that being a trader is synonymous with being a good market analyst. As I have mentioned before, this couldn’t be further from the truth. Now don’t get me wrong, learning about the markets can certainly play a role in one’s success, but it’s a supporting role and shouldn’t be relied upon as much as most traders mistakenly do.
Don’t Pull a Prime Minister Trudeau
What is crucial for long-term, consistently, successful trading is learning that you have to acclimatize to this unfamiliar environment called the Stock Market.
Before all else, you have to know without a shred of doubt that your ultimate success as a trader cannot be realized until you adopt a way of thinking. A way of thinking that will result in a rigid, unshakeable belief in uncertainty.
Let’s take an example. If you were going to visit a foreign country that is completely unfamiliar to you, wouldn’t you take the time to familiarize yourself with the customs and idiosyncrasies of this new country to make sure you don’t offend someone with a gesture or an incorrect phrase? When Canadian Prime Minister Pierre Elliot Trudeau (the current PM’s father) was visiting Australia in the early 70’s, as he boarded a train, he turned and did a two finger victory sign. Unfortunately, Mr. Trudeau had not done his homework, and familiarized himself with the Australian culture, for if he had he would have known in Australia the two-finger victory sign is the same as the one finger salute here in the US.
So it is crucial you familiarize yourself with the local customs when you visit a country that is very different from what you are familiar. When you get to your destination and become acquainted with this new environment, you’d adapt your behavior accordingly because, if you don’t, your trip could end in disaster, like it did for poor PM Trudeau.
Traders frequently ignore the fact that they have to adapt to a totally new and alien environment when they start to trade. Most don’t even understand they are in a “foreign country” and they need to adapt. If they don’t understand this it is very unlikely they will become a consistently, successful trader.
There are two prime reasons traders don’t understand they are in a foreign environment.
Reason #1 You need no skill
The first is that a person needs absolutely no skill of any kind to put on a winning trade. For most traders, it usually takes years of pain and suffering before they figure out or finally admit to themselves that there’s more to being consistent than the ability to pick an occasional winner.
Reason #2 You can trade anywhere, even the bathroom
The second reason is that you don’t have to travel anywhere to trade. All you need is access to a computer. You don’t even have to roll out of bed in the morning. Even traders who normally trade from an office don’t have to be in the office to put on or take off their trades. Because we can access and interact with the market from home, car, office, ballpark, you name it, it seems as if trading doesn’t require any special adaptations. But unfortunately, they are wrong.
They simply don’t understand that they have to do some very hard work – hard mental work – to reconcile the many conflicts that exist between what they’ve already learned and believed, and how that learning contradicts and acts as a source of resistance to implementing the various principles of successful trading. Getting into “the zone” requires that those conflicts be thoroughly resolved.
Plan Your Trade and Trade your Plan