Posted May 21, 2021
By Alan Knuckman
The Difference Between a Novice and a Veteran? Discipline!
You’ve heard me say it before… Why it’s important to stick to a plan, maintain discipline, etc…
Well, at the risk of sounding like a broken record, I’m here to tell you that it’s more important than ever right now!
The market has been pretty volatile lately, we can see it in the back-and-forth swings the major averages are experiencing every week. One week we go up the next we go back down, sometimes it happens even quicker.
If you’re trading emotionally it can be exceedingly easy to get caught on the wrong side of these break-neck market moves. And that’s the last thing you want!
I like to say that there are no good or bad markets, there are opportunities to make money in ANY market environment. You just have to trade what you see and stick to what’s working.
It all comes back to having a plan.
Don’t have a solidified plan? No problem, it can be quite simple...
Take a look at your trading strategy and ask yourself, what’s working? What isn’t working? You should be able to pick out a few key points.
Once you find what’s working, stick with it! The key to any successful trading plan is consistency and repeatability. You want to build on your gains to grow them exponentially. If you’re switching up your strategy every week to accommodate different market conditions, it can be nearly impossible to win consistently.
So keep it simple, stick to what is working for you and cut out the parts that aren’t.
Your chances of success should be higher after performing this simple step.
Lastly, remember that it never hurts to simply observe and plan from the sidelines until you feel more confident!
Keep it In the Money,
Trading Tip of The Day: Don’t Confuse Yourself
To piggyback off what Alan was talking about, I’d like to add my own trading strategy tip…
Keep it simple!
You can drive yourself up a wall with complicated strategies and all you’d be doing is spinning your tires. If you’re new to trading, even if you’re a veteran, I’d bet that you can get more done by simplifying your strategy than you can by adding to it.
Simplicity is key. When your plan is simple, it’s easy to understand, easy to replicate, and easy to pivot if you run into some issues.
Investment strategies can be very confusing, but the thing is, they don’t have to be. You can simply start by following price action and learning pattern recognition for chart analysis. With that alone you could potentially see yourself start to win more.
The more complicated you make things the more time you’ll spend trying to understand your own strategy than you will booking winners.
So don’t make things harder than they have to be, your portfolio will thank you.