Letting Go of the Need to Know
Do you always need to know what’s going on?
What a volatile couple of weeks it’s been on Global Markets. Nothing like a couple of 1000+ point single session drops on the Dow Jones Industrial Average (DJIA), combined with the VIX Volatility Index locking in a 100% up day last week, to get the heart beat racing.
Market opinion by TV networks, online media, forums, social media and just about every man and his dog on the street, has been wide and varied.
It might be a fundamental theory someone has. A chart pattern or an obscure technical indicator. Or some other independent analysis that’s being used to explain the current market reaction.
Then there’s the forecasts about where markets are going next.
This got me thinking.
As traders, is it really important to know which way the market is going from one day to the next?
Or, do we become better traders when we overcome our ego’s need to be right, and recognise that we do not know which way the markets are going to move on any given day?
If we can acknowledge that no one has the ability to consistently predict market direction, only then can we let go of the need to know. The need to be right.
Disciplined Traders
Most successful, disciplined traders will freely state that the need to be right. The need to know what the markets are going to do, is not part of their trading strategy.
They understand that it’s OK to be wrong, as long as you don’t stay wrong by holding onto trades that should have been exited long ago.
So the message from successful traders is clear. You don’t need to know what the markets are going to do today. They understand that markets for the most part are unpredictable. They also understand that it’s OK to be wrong, and that it has nothing to do with becoming a successful, highly profitable trader..
Successful traders know the importance of having a robust trading strategy that tells them when to get into a trade, when to get out of a trade, and how to correctly position size. The rest is in the lap of the Gods
If you don’t have a robust trading strategy, take The Chartist trial membership. During the trial you will get access to Building a Profitable Trading Plan Using Technical Analysis. This course was previously sold for $550 but is now included free with your membership. The course is a great way to step through and build a robust strategy to suit your situation.
