Do you remember what is the first thing you do when you enter the subway/train station?
Subconsciously, you have been tuned to flip out your mobile phone and start checking messages, check your mail, check your trades or just text someone even you dont have anything much to say.
WHY ? Because the first thing you do when you enter the train, your eyes and brain start to scan the external environment. You notice the young and old, the working professionals, the housewives, the students are all busy looking, smiling or talking on their phones. Now, you may not want to do so but you feel awkward if you do not follow the norm.
So, out of exasperation or fitting in, you do the same thing. Over time, without you knowing ,after settling into the train, you do what everyone else is doing - with the phone.
Now, if you could make a conscious habits of checking your phone ONLY when there is a text message or at certain times of the day(say 3pm) , then you free your mind to focus on other important things that need your attention. Maybe , you would say, it won't take long but all these minutes would add up over the numerous trips you take a day. You could have do something useful like reading a self improvement book, learn a foreign language, settle the urgent and important things like paying bills ,etc.
The same goes with your trading/investing habits. With technology getting more advanced, brokers round the world are making it EASIER and EASIER for you to trade. They make trading like a game with community chats and rewards points to gain if you do a certain number of trades or refer someone to their platform.
So, invariably, if you have not DECIDED when to trade , then you may jolly well fall into their traps, haha. And you started to trade more frequently than before and place trade while you are on the move. And when you make profits , you begin to feel you are superior and smart and an expert and that satisfaction (reward) will motivate you to do it again and again.
Knowing what to trade is important but having the knowledge when to trade is also a key component in being a self disciplined trader. You have to be responsible for your own money !
Regardless of what time frame you draw on the chart, there is always some thing you can do, buy or sell. And that is the Attraction point, drawing you in as you get more curious and need to satisfy the desire of proving yourself right! I have been wrong so many times and would continue to do so but I do not place every trade in all the charts that I plot out .
The first reason is of course CAPITAL and allocation of capital. It is like you have a dollar and you can buy either vanilla or strawberry ice cream but you cannot have both. So you gotta decide which flavour you like more. The same thing, there are stocks that I prefer over others , assets that I know more over others so naturally, I would place my bet on those that I am comfortable with.
This , invariably would add on to my experience as I sharpen myself to learn from my mistakes. But if I start to buy every asset class or put a dollar here and a dollar there , not only it is hard to monitor but also tough to become knowledgeable in that particular sector. Of course, if it suits your risk appetite, then it is OK. Everyone works differently. Please read this with a pinch of salt and not treat it as investment advice but as a reference. Best of luck !
Subconsciously, you have been tuned to flip out your mobile phone and start checking messages, check your mail, check your trades or just text someone even you dont have anything much to say.
WHY ? Because the first thing you do when you enter the train, your eyes and brain start to scan the external environment. You notice the young and old, the working professionals, the housewives, the students are all busy looking, smiling or talking on their phones. Now, you may not want to do so but you feel awkward if you do not follow the norm.
So, out of exasperation or fitting in, you do the same thing. Over time, without you knowing ,after settling into the train, you do what everyone else is doing - with the phone.
Now, if you could make a conscious habits of checking your phone ONLY when there is a text message or at certain times of the day(say 3pm) , then you free your mind to focus on other important things that need your attention. Maybe , you would say, it won't take long but all these minutes would add up over the numerous trips you take a day. You could have do something useful like reading a self improvement book, learn a foreign language, settle the urgent and important things like paying bills ,etc.
The same goes with your trading/investing habits. With technology getting more advanced, brokers round the world are making it EASIER and EASIER for you to trade. They make trading like a game with community chats and rewards points to gain if you do a certain number of trades or refer someone to their platform.
So, invariably, if you have not DECIDED when to trade , then you may jolly well fall into their traps, haha. And you started to trade more frequently than before and place trade while you are on the move. And when you make profits , you begin to feel you are superior and smart and an expert and that satisfaction (reward) will motivate you to do it again and again.
Knowing what to trade is important but having the knowledge when to trade is also a key component in being a self disciplined trader. You have to be responsible for your own money !
Regardless of what time frame you draw on the chart, there is always some thing you can do, buy or sell. And that is the Attraction point, drawing you in as you get more curious and need to satisfy the desire of proving yourself right! I have been wrong so many times and would continue to do so but I do not place every trade in all the charts that I plot out .
The first reason is of course CAPITAL and allocation of capital. It is like you have a dollar and you can buy either vanilla or strawberry ice cream but you cannot have both. So you gotta decide which flavour you like more. The same thing, there are stocks that I prefer over others , assets that I know more over others so naturally, I would place my bet on those that I am comfortable with.
This , invariably would add on to my experience as I sharpen myself to learn from my mistakes. But if I start to buy every asset class or put a dollar here and a dollar there , not only it is hard to monitor but also tough to become knowledgeable in that particular sector. Of course, if it suits your risk appetite, then it is OK. Everyone works differently. Please read this with a pinch of salt and not treat it as investment advice but as a reference. Best of luck !