Trade to Win - Proven Strategies to Make Money

c18 JWBT016-Busby September 30, 2008 15:3 Printer: TBD

178 THE WILD CARDS

Be Confident

The market will pay you what you believe that you are worth. If you think

that you are a bad trader, the market will agree with your assessment. If

you believe in your abilities and approach each and every trade with an

attitude of confidence, the market will respect your skills and pay for them.

Believe in yourself and your trade. If you do not have faith in the trade or

faith in your ability to execute the trade properly, do not make the trade. It

takes confidence to trade successfully. Look at the numbers, read the tape,

check the time of day, and consider the risk associated with the trade. If

all aspects of the trade are not in sync, wait for a better chance. Never

put money on the line unless you believe that the trade will make money.

Those who expect to lose will lose. They will sabotage themselves in some

way. Get a winning strategy. Test it and verify that it will work. Then have

confidence in it and in yourself.

Focus

Trading requires focus. I learned many years ago that if an event in my life

is preventing me from being focused on my trading, I should not trade.

There are times when we are angry or upset or ill that we just cannot

watch the numbers and do a good job of analyzing them. An argument

with the wife or kids, a night when we could not sleep, the illness or

death of a close friend—all of these and dozens of other events will in-

terfere with our ability to concentrate and focus. Therefore, if something

is throwing you off and preventing you from paying attention to your trad-

ing, do not trade. Take a rest. It is best to stay out of the market for a few

days than to trade and lose money. Trading is a tough game. It requires

your best.

Sometimes a break from trading is good. After a big loss or a series of

losses, take a rest. Do not trade for a week or so and clear your head.

Rethink your strategies. Study your mistakes. Try to identify the errors

that were made and vow to stop making them in the future. Write down

what steps you will take when you start trading again to turn your trading

around. When you go back to the market, approach it gingerly. Take small

positions with little risk. Take pride in every victory. As your confidence

grows, increase your positions and get bolder. Sometimes we all need to

go back to the basics and get a refresher course to help us stay disciplined

and profitable.

PEARL 29

Some days, your best trading decision may be to stay in bed.