Through my years of experience with the stock market, I’ve learned many lessons that all help me in at least some small way, none of which is more powerful than the one I’m going to share with you today.
It’s a secret that completely altered my way of thinking when it came to trading and investing.
That secret has saved or made me thousands upon thousands of dollars, and now it can be your secret, too…
As a newcomer to the stock market I made plenty of mistakes that plague virtually all Wall Street rookies. I had plenty to learn, and many things I was able to correct or improve simply through gaining experience.
I learned how to spot patterns, protect my positions, etc., etc.
And while all of those things certainly made me a much better and much more successful investor and trader, 1 lesson in particular sticks out as more of an epiphany than just another lesson.
What was it?
To put it simply, I asked myself this question…
Do I want to trade, or do I want to make money ?
Please allow me to explain.
First of all, I’m not saying that trading is bad. Of course it isn’t. Trading has become a fantastic income stream for myself and many others. So keep that in mind as I continue.
My main point is that you need to make sure you prioritize making money over being an active trader.
You can be long on a position (bullish), you can be short on a position (bearish), AND you can also be in cash.
What I’m saying is that you can easily fall into the trap of thinking you always have to be trading and making moves. That’s just not true. The smart traders realize that you should only make a move when you feel very confident about a certain position.
As soon as I realized that trading for the sake of trading was the biggest thing holding me back, I immediately became a much better trader.
Now I’m able to focus on the trades that I feel the best about. Maybe that means I trade 4 times a week, and maybe that means I don’t trade at all one week because the stock market is too volatile or I simply haven’t found a security I love.
So ask yourself, do you want to trade for the sake of trading, or do you want to make money?
