All Winning Stock Traders Have an Epiphany
We’re having a discussion in the trading room this morning. It occurred to me that the quote by Bruce Lee above sums up my view of a successful trader and by default a successful trading room. While the subject is vast, I just wanted to share some of the more poignant comments.
“The topic reminds me of a recent conversation with a college kid who went to an Elliott Wave class. Maybe he found his style. Maybe he had an epiphany.”
The problem with this trader then became, everyone else is an idiot. He went on to lambast everyone who didn’t use Elliott Wave. Big mistake because I “blocked” his arrogant ass. Insulting people, after discovering what works for you by saying “no no no you have to do it my way” is just arrogant.
Following a successful trader’s entries might work sometimes. If you know their style, maybe you catch a few lucky trades once in a while. However, assuming they have all the answers is a big mistake. No one has all the answer(s). Each individual must find what works for their unique circumstances, thereby creating their own style.
It only delays your quest for an epiphany.
Our goal is to help you with the search for your epiphany. This includes money management, technical and fundamental analysis as well as proper entry, exits, and stops.
The subject of indicators came up while traders were discussing their successes. This created an opportunity for discussion, as these traders search for what works for them while discarding that which provides no benefit.
Understand what the creator of the indicator you are using had in mind when he or she designed it. Using MACD without an understanding of what Gerald Appel designed it for leads to failed trades – not the indicator.
When we see traders post charts it means little until we do a little homework. This is called workflow, capitalizing on a Top-Down Approach. Does it fit my criteria? What is the market doing? Is the sector showing relative strength? Where is price relative to support and resistance? Can we manage a minimum 2:1 reward compared to my calculated risk? How long will we be in the trade? What are our targets? This is just a few examples, in order to make a point.
Taking a trade just because a chart is posted will absolutely lead to mistakes. You might catch the momentum and time a perfect entry, but unless you’re looking over this traders shoulder, you have no idea what their goals are. Worse, you might miss their exit.
Be humble in your quest. You might learn something in the process.
Understand what others have done to become successful. Read on the subject. Get passionate. Learn all you can and become an expert. Find out what successful traders are doing and mirror what makes them successful.
The bottom line is, you might ask a question that makes you feel stupid for the moment, but if you don’t ask, you might stay stupid for years. Always ask questions in your life.
Find your epiphany.
On the Subject of Epiphany
Three Steps to Winning Stock Trades http://wp.me/p32Fxi-5wp
Super Secret Indicator http://wp.me/p32Fxi-5g6
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