I should only take 100% certain signals – the ones that I know will not fail me
This one is tricky. It seems that it makes good sense. Shouldn’t we all analyze the market properly and find the best possible trading opportunities? Why should we even bother taking the trades that we are not certain about?
So how do you feel, think and act when you believe this?
- Reluctant – “This signal does not look quite certain yet…”
- Frustrated – “I’ve been analyzing the market for hours now, but no trades look certain enough yet!”
- Reckless – “Now that I found this 100% certain signal, I can scale up my position and I don’t really need Stop Loss either – this trade can’t fail!”
- Worried – “Well, this trade does not behave quite as I expected, but I am sure it is just a temporal correction.”
- Hopeful – “I should just double my bet while Market gives me better price…”
- Afraid – “This does not look good so far, I don’t have much margin left…”
- Numb – [just stares at the screen…]
- Horrified – “It’s all #u?king gone! My whole account!”
The above example might be over-dramatized but it shows what can result from your inability to accept uncertainty.
You certainly get a lot of excitement trading that way, and I guess for some
traders gamblers excitement is a goal in itself.
Let’s consider the opposite belief:
I should take any signal my trading system offers, knowing that none of them is certain
How do you feel when you believe in the above statement?
- Calm – “I am just doing my job, taking each opportunity I find”
- Quiet – “Every trade feels completely the same inside”
- Composed – “I know exactly what I am doing”
- Safe – “My account is always protected when I trade like this”
- Optimistic – “I am looking forward to positive long term results of my trading regimen”
Not much excitement, nor fun. Reminds me of one of my favorite quotes from “Market Wizards” in interview with Larry Hite:
“Larry, how can you trade the way you do; isn’t it boring?” I told him, “I don’t trade for excitement; I trade to win.” It may be very dull, but it is also very lucrative.
If you are excited about your trades, you are doing it wrong. If excitement is what you want, just go to Las Vegas – at least you get free drinks as you lose your money.