Trading Success Secrets: The Good Times Roll Must End
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They say that life is a beach.
So is investing.
The undulating waves of trends and counter-trends. The froth of bubbles. The flotsam and jetsam of losses. And, sometimes, under the clear sky and hot beaming sun, the perfect wave forms.
And, like daredevil surfers, most traders paddle out to catch it. Soon, the sea is full of fellow traders riding this wave.
Unfortunately, the summer is not endless, the wave must crash to shore, and the roll of the good times… even the best times… must end eventually.
One of the common problems that investors and traders face is not catching a wave; it’s when to hop off and look for new opportunities. And, once the wave has dashed them on the shore of losses, they don’t know when it’s safe to go back in the water.
This is another psychological glitch in the system. Winning trades and the promise of higher and higher returns can be addictive. Even though you could ride the equally prosperous tide that leads back to the sea of profits, you hang on.
Until it’s too late.
Trends do not continue indefinitely and once they hit critical mass can turn on investors still prepared for the long ride up. Fear usually then steps in causing a trading paralysis, when traders either stop altogether, or second guess every move they make.
How can you reverse this? The first step, just like any 12-stepper will tell you, is to recognize you have a problem.
Another way to deal with this issue is to use technology.
Richard Dennis, world-famous trend investor, once said that “computers” made trend investing easier. That’s because, like Online Investing AI Automated Trading systems, computers don’t get lulled into thinking the party never ends, the good times always roll, and high tide is a perpetual state.
Related posts:
- Trading Success Secrets: Overdosing on Opinions
- Trading Success Secrets: When Sunk Costs Surface
- Five Ways To Optimize Automated Trading Systems
- Basic Technologies For Trend Traders
- The Future of Automated Trading
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is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
