Never Hesitate Again

Very grateful to have a new class of traders come into our community this week.

It’s always fun to see what they see. Interesting to remember where you were in your trading journey. We’re all on the same path, some are just down the road a bit.

I wanted to share a lesson from last night’s two-hour coaching call.

The Prediction Trap: How do I know if the stock will keep going? Where do I think the stock will be in a month?

Let’s have an honest discussion amongst friends. Nobody knows. Nobody.

But the exciting thing is you don’t need to know. Our job is to take all of the information and decide what’s likely to happen next. That’s what speculation is.

The better distinction you make, the better your chances of getting the outcome you expect. Yes, it’s a skill to learn how to make those distinctions. Very similar to driving.

Also very similar to driving, passing the written test to get your permit, does not make you a skilled driver. It gets you behind the wheel. Similar to knowing charts.

Having setups does not make you a trader. You need to trade to learn how to trade. Real trades.

Also…a simulated account is good for learning software. It does not help you become a skilled trader. If you don’t believe me, go play Grand Theft Auto for a month and let me know if that improves your driving or ability to rob a bank.

A key takeaway here is one of basic math, but more importantly one that leads to COMPLETELY changing your mindset.

A few traders last night mentioned “fear and hesitating.” Here’s the magic sauce.

You hesitate because of two things: You don’t have an edge so you feel like you’re guessing. Or number two, you have an edge and you don’t trust yourself to follow it.

If you believe in the edge, and trust yourself to follow it, you will take every good trade that defines your edge, without hesitating. Because you’re simply implementing your strategy. 

And one more thing, and this is important. Most traders are afraid because they wonder if the next trade will be profitable. Wow this is a big one.

Here is the deal, and this changes everything. Reduces your stress by 90%.

Trade by trade results are random. You already know this, but maybe you haven’t put the pieces together. How? Think about two perfect setups. One does exactly what you expect, the other perfect setup, goes perfectly in the other direction.

Random.

But, over a large sample size of good trades that match your edge, the results are predictable. Assuming you manage risk and learn how to manage profits.

Think about the incredible implications of this. The result of the next trade doesn’t matter. It’s the results of the next bunch of trades that matter.

And that should excite the hell out of you. Because it means you’re in charge of the outcome.

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