Advice on anything can be found anywhere. It’s human nature, we love to offer it, but discerning the good from the bad can often be confusing and difficult.
Trading attracts more than its fair share of experts, soothsayers and those who know a thing or two. For those who genuinely want to develop the skills required to trade successfully it can be a minefield. We at the Lazy Trader are not trying to offer the latest ‘hot tips’ to success. There are down to earth methods and technical approaches for trading successfully on our website. Here we high-light a much more simple and rarely considered approach to trading: Be yourself.
This may sound a bit whimsical not be the ‘hot tip’ we want to hear, but it’s arguably one of the best. We are normally more comfortable with a straightforward set of instructions such as, “to achieve y you must do x”. In this way we are putting our outcomes, our destinies even, in the hands of others and so not having to think too much ourselves, and if the outcome is not the success we want or expect then we have in a way absolved ourselves of blame (it’s not our fault we were advised to follow these sets of instructions).
The advice, ‘just be yourself’, prompts us into standing more on our own feet. Following the crowd, unless there is good reason, often amounts to no more than taking the easy option and absolving ourselves of making decisions. Human nature tends to feel more comfortable, more adventurous, when operating in a pack.
So how exactly does ‘just be yourself’ enhance your trading? Well, it integrates our trading with our personality, which is after all who we are. Most of us have rules in life that we like to try and follow, qualities that we aspire to and hopefully friends and family see reflected in us; qualities such as individuality, honesty, integrity, gratitude; the stuff that makes us a responsible and valuable part of society. Now you may be starting to think that this is all a bit far fetched, but apply the rules by which you like to, or at least try to, lead your life and you will discover that it actually enhances your trading.
For example, write your own trading plan. Don’t just follow what you believe others are doing. Be diligent: develop, test and refine your own methods and strategies. You’ll then have your own trading plan that you know and trust, a mark of your individuality.
Keep honest and objective records in your trade journal. Without that there is no chance of learning and improving our skills. We have to know why we took a trade (was it just a punt or carefully thought through) and we have to ask ourselves why it succeeded or failed. This is vitally important. Good technical set ups may fail, but we must try to understand why, and record it. Only then can we start to build an overall picture.
Greed is a dangerous and costly quality, and it will without doubt be detrimental in trading. A well-devised trading plan will tell you when to exit a trade, either one that is going well or badly. To hang on in the trade, to squeeze more out of it or in the hope of making back losses, when your trade plan says that it is now appropriate to exit, is always a mistake.
Trading shouldn’t be hard. The technicalities of how to use the soft ware and read charts are something most people can learn with some patience and practice. More difficult is developing the right approach, but if we treat trading with the same respect and integrity with which we like to try and lead our lives, then we are certainly taking large steps towards trading successfully.
Trading attracts more than its fair share of experts, soothsayers and those who know a thing or two. For those who genuinely want to develop the skills required to trade successfully it can be a minefield. We at the Lazy Trader are not trying to offer the latest ‘hot tips’ to success. There are down to earth methods and technical approaches for trading successfully on our website. Here we high-light a much more simple and rarely considered approach to trading: Be yourself.
This may sound a bit whimsical not be the ‘hot tip’ we want to hear, but it’s arguably one of the best. We are normally more comfortable with a straightforward set of instructions such as, “to achieve y you must do x”. In this way we are putting our outcomes, our destinies even, in the hands of others and so not having to think too much ourselves, and if the outcome is not the success we want or expect then we have in a way absolved ourselves of blame (it’s not our fault we were advised to follow these sets of instructions).
The advice, ‘just be yourself’, prompts us into standing more on our own feet. Following the crowd, unless there is good reason, often amounts to no more than taking the easy option and absolving ourselves of making decisions. Human nature tends to feel more comfortable, more adventurous, when operating in a pack.
So how exactly does ‘just be yourself’ enhance your trading? Well, it integrates our trading with our personality, which is after all who we are. Most of us have rules in life that we like to try and follow, qualities that we aspire to and hopefully friends and family see reflected in us; qualities such as individuality, honesty, integrity, gratitude; the stuff that makes us a responsible and valuable part of society. Now you may be starting to think that this is all a bit far fetched, but apply the rules by which you like to, or at least try to, lead your life and you will discover that it actually enhances your trading.
For example, write your own trading plan. Don’t just follow what you believe others are doing. Be diligent: develop, test and refine your own methods and strategies. You’ll then have your own trading plan that you know and trust, a mark of your individuality.
Keep honest and objective records in your trade journal. Without that there is no chance of learning and improving our skills. We have to know why we took a trade (was it just a punt or carefully thought through) and we have to ask ourselves why it succeeded or failed. This is vitally important. Good technical set ups may fail, but we must try to understand why, and record it. Only then can we start to build an overall picture.
Greed is a dangerous and costly quality, and it will without doubt be detrimental in trading. A well-devised trading plan will tell you when to exit a trade, either one that is going well or badly. To hang on in the trade, to squeeze more out of it or in the hope of making back losses, when your trade plan says that it is now appropriate to exit, is always a mistake.
Trading shouldn’t be hard. The technicalities of how to use the soft ware and read charts are something most people can learn with some patience and practice. More difficult is developing the right approach, but if we treat trading with the same respect and integrity with which we like to try and lead our lives, then we are certainly taking large steps towards trading successfully.
Editors’ Picks
EUR/USD stays defensive below 1.1900 as USD recovers
EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.
GBP/USD holds above 1.3600 after UK data dump
\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.
Japanese Yen strengthens on renewed verbal intervention
USD/JPY extends its losses for the fourth successive session, trading around 152.90 during the Asian hours on Thursday. The pair weakens as the Japanese Yen strengthens following renewed verbal intervention from Tokyo.
Editors’ Picks
GBP/USD holds above 1.3600 after UK data dump
\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.
EUR/USD stays defensive below 1.1900 as USD recovers
EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.
Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD
Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.
Cardano eyes short-term rebound as derivatives sentiment improves
Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.
A tale of two labour markets: Headline strength masks underlying weakness
Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.
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