The best thing about trading is that every day presents unique opportunities for us to learn, grow, and profit. Some of those days are wild back-and-forth affairs where traders need to be able to quickly adapt to changing conditions, and other days such as today are just slow and steady grinds in a single direction. While a more volatile market is admittedly more fun to trade much of the time, it's days like these that are crucial to long term trading success.
Keys to Trading Success
When things are moving somewhat slowly we need two critical elements to stay in full control of our trading: Patience and Discipline. While it sounds easy to have both, they are actually skills that any trader needs to constantly work on developing and maintaining. Slow markets, impatience, and greed can be a deadly combination so it's critical that you have a plan to follow and that you stick to it.
Too often that little burst of order flow that gives us a small movement is all it takes for a novice trader to jump into a trade too early, simply because they think that to be a trader a person needs to always be taking trades. This is what separates the professionals from the little guys who get chopped out of the market and see their accounts implode quickly. The professionals know that they don't get paid based on how many trades they take. They make their money by being patient and taking the high quality setups that fit their plan.
The professional trader is patient and precise in finding their setups, and profits are the inevitable result of their discipline.
Some people are naturally born with the talent for trading discipline, but they are few and far between. The vast majority of those who have made a living out of the markets have done so because they have put a great deal of effort into their development. They are always looking at new ways to trade the markets, trying to learn a lesson from every trade, and they realize that working on one's self is the true Holy Grail of trading.
This is what makes trading so rewarding. Trading success and personal development go hand-in-hand, so by improving your understanding of your own thought process and emotions you can improve your trading results as well. If you have been struggling as a trader, commit to a path of development that includes some time for introspection and you will see steady improvements. Many people focus on systems and indicators and the new "hot tip" or trading fad, but lasting trading success always grows from within.
The Trading Recap Video
Today's recap video isn't all that action-packed with only four trades total, but it's a good lesson on sticking with the trend. I was a little aggressive at times, I'll admit, but the trend won out on the day and kept me safe.
This a crucial trading concept that many people understand in theory but have trouble implementing in practice. A good rule of thumb is to simply stick with the trend until the market gives you very strong evidence that it has shifted direction. Small moves are not convincing, so better to wait for something that really stands out and screams at you to re-think the direction of the market.
This thinking kept me on the right side of the market today and also allowed me to hold through some drawdown with confidence. I wasn't given a good reason to bail out of my positions so I stuck with them to the end and eventually was rewarded.