|Sit There and Wait
|November 28, 2006
I hope by now you feel well-rested after the holiday weekend. I suppose it depends on whether you were one of the many who partook in the annual “running of the shoppers” over the Black Friday weekend — the traditional kick-off to the holiday shopping season.
Now that we’re officially immersed in the holiday season we can expect an endless string of parties, home-baked goods around every corner and seemingly never-ending stress! Let’s face it — all this running around, whether we’re at the mall or racing around to visit everyone on our list — the stress can be dizzying and leave us plum worn out!
And all this stress spills over to every aspect of our lives...even our trading lives. We don’t want that. That’s why I’m offering up some recent advice from my Trending123 associate, Neuropsychological Trading Coach, Dr. Janice Dorn. Hopefully her insight can help you reduce at least part of your stress and get you on a journey to long, healthy profits!
Sit There and Wait
There is an old Zen Koan that says: Don’t just do something…sit there.
How appropriate for these markets.
The most difficult thing for traders to do is to sit there and wait. Why? Because we are in a society that is on a total dopamine binge, and this is never more clearly manifested than by those who absolutely have to be in the markets at all times, absolutely need to be trading, and absolutely cannot wait. They are human do-ings.
There is a wonderful advantage to waiting. It allows you to be neutral — it frees you from always looking for bearish or bullish views to justify your positions. Granted, you are not making money, but you are also (and much more importantly) not losing it.
Just waiting without stress for the right opportunity allows you, in a way to be like an invisible observer of the scene around you. It frees you from active involvement in the chaotic and often reckless behavior of others in the markets, and it puts you and your trading plan into clear perspective. It allows you to see yourself as a human-being, rather than a human do-ing.
When you first started trading, what did you hear constantly? Preserve your capital. Preserve your capital. You heard it, but maybe you did not listen, or did not understand. If you have no financial capital to use, you are out of the game. If you are chasing or getting in just to get in and are getting whipsawed daily and you are losing, drip by drip or in larger chunks, you are out of the game. If you wait, take time, assess the situation and then pounce like a jaguar at the right opportunity, your chances for trader longevity increase significantly. You have preserved your financial capital, and deployed it appropriately with a good risk/reward ratio.
BUT, there is something that many do not recognize about capital. It is both financial and psychological.
Your financial capital is critical, of course. Money is money and money buys stuff and makes people happy. However, money is a byproduct of the great game of trading.
Your psychological capital is at the essence of the person you are…both as a trader or an investor and as a human being. The number one rule of trading is: Preserve your psychological capital. This means making yourself strong and healthy…emotionally, spiritually, physically and intellectually.
This means standing apart from yourself and looking at yourself with a critical eye, almost as if you were advising someone else what to do, how to trade or how to live.
If you want to get a true picture of who you really are, what you are capable of doing and becoming as a trader and a human being, then stop looking outside of yourself. Go within, as the answers are all there. I promise you that it will be the most amazing journey of your life.
Start your journey towards amazing profits today.
Today, you can start the journey with my 3 brand-new Hot Stock picks.
Arena Pharmaceuticals Inc (ARNA)
Arena Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of drugs in the therapeutic areas of metabolic, cardiovascular, inflammatory, and central nervous system diseases.
Yamana Gold Inc (AUY)
Yamana Gold, Inc. engages in the acquisition, exploration, and development and operation of mineral properties in Brazil and Argentina. The company also holds exploration gold properties in the eastern part of Santa Cruz Province in the Patagonian region of Argentina, and the Cumaru and Gradaus properties in Brazil.
Western Refining Inc (WNR)
Western Refining, Inc. engages in refining crude oil and marketing refined products. It owns and operates a crude oil refinery. The company refines crude oil into gasoline, diesel fuels, and other refined products; and sells its products and refined products purchased from third parties.
Find out more about each Hot Stock through my audio alert; including its target price, pattern trend and upside potential.
P.S. In an ever-changing market, it’s not easy to keep up or know what to do next. That’s why my priority is you. With timely analysis, multiple daily updates, stock charts, education if you need it and most of all, profits, you will always be “in the loop” on everything that matters. Whether you’re a seasoned pro, a rank beginner or somewhere in-between, you’ll find plenty to like at Trending123.
P.P.S. Stay tuned for my next round of Hot Stocks…
coming soon to an email box near you!