Traders are often at their best when trends are in place and volatility is low. That is when the biggest bets are made. You’d think volatility is good for traders, but not when this level of volatility hits. In these times, it is best to make small commitments and take quick profits along the way.
On the other side of things. The most successful investors patiently wait for fear driven opportunities and make the bigger commitments there. It take a lot of independent thinking and a lot of patience- but that is how investors make money.
The key is to think in terms of neither all in nor all out. Think instead of using the tier system in move in and out without “the BIG decision”. I do not think of myself as working at NASA, and the old discussion that if I was wrong by one second the whole spaceship will explode on re-entry. Instead, I want to buy and sell within ranges. I want excellent entry points- not perfect.
I took my son to the golf range over the weekend. What a great metaphor for trading. Trying too hard, pressing, and banging on the keyboard are all bad for your P&L. Do not get frustrated. Relax and get find your zone.
*DISCLOSURE: No relevant positions
This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs. Visit the T3Live Homepage, Virtual Trading Floor, and Learn More About Us.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer