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Understanding the Distriction for Trading in the Markets

A long time ago, I want to be a professional basket ball player. When that did not work out, I try being a Professional Tennis player. And that did not work out either.

In the process, I had it that “practice makes perfect”. That did not seem to be true over time. What I have learn is NOT just practice but rather distinctions in a sport or in a discipline is what it take to excel to expert level. Understanding is also not necessary in many profession rather, experience is the require ingredient. To get experience is to fail often. A good test for something is a simple phase “Been there, done that”.

I have taken on trading in the market and have had some interesting distinction that I would like to share. Here is what I experience so far in the trading profession:

  • Sell when the market is greedy (VIX is low), Buy when the market is scare (VIX is high)
  • If the Trend is high, it should be base on your trading rules to SELL or BUY. (it is not always the same)
  • Trading is an activity distinct from how much money you make or lose
  • A long term trader (trading for life) will make wise decision vs. an emotional one who just want to get rich fast
  • Trading decision made when the market is open have more emotions tied into the trade.
  • Making money due to luck is not an effective training tool. It is just luck and a matter of time before failure.
  • Charts do NOT predict the future.. It show the PAST and only the past. Experience is require to read it correctly. NOT predictions.
  • The more you get to know, the less time you spend on taking action
  • Financial NEWS is entertainment for the investors. It is NEVER a good trading tool. (bad habit)
  • The best traders only trade about a dozen stocks his whole career. Get the edge on the market.
  • Use the same Metric you used to get INTO a trade as you get OUT of a trade
  • Simple as possible and NOT simpliar

BGO – Blinding Glimpse of the Obvious

1. Focus on Trend, Suport/Resistance, & momentum to be a consistant profitable trader

2. When the market change direction. “Change Direction”

3. When the Martket give you an OUT, TAKE IT

4. Commit to buy a Stock when it breaks resistance.

Mindset – Fix mindset is the hardest to learn in.. Reluctant to volenteer. For a growth mindset, if it is worng, I will get the correct info in the head.