Why Cash is King?
Well this weekend is, of course, the Superbowl, therefore I'll be posting a bit early. I'll tell you my pick to in the end along with a major update about my trading.
Today's topic I will be dissecting the idea of staying liquid 100% of the time. Meaning that the best option is too not trade at all. Seems simple, but again as I commonly repeat the vast majority of Traders' loose in the Markets. Why? Unfortunately, there is no magic formula resolve this common statistic, but I can share with you today my opinion on this matter. Every week, I brainstorm ideas on what the next blog post topic will be. This week I came to the conclusion that I wanted to focus on the idea of NOT trading. Why? Well for some personal matters which I'll share in a moment, but mainly for the benefit of others'. There is one quote by Leo Tolstoy that summarizes today's post, "The strongest of all warriors are these two: Time and Patience." That one quote truly opened my eyes. So what does Time & Patience mean in your trading? Allow me to explain.
Time: In my opinion, FOMO is one of the primary reasons why the vast majority of Traders don't create a state of consistency. If you trade randomly, you'll bound to get random results. Fear of missing out will lead to over trading, thus opening the door for potential disaster. Why do Traders have FOMO? This problem can be traced back to one idea. TIME. Yes, time. Time plays a pivotal role in creating any state of discipline. See the sole purpose of Trading is to create profit. And how do you create profit...by Trading. That is where the problem begins. In your mind, the only way to create a state of profitability is to simply Trade, and hope it turns out well. Hope is NOT a strategy. Never feel guilty of missing a Trade, the opportunity will come back because human nature never changes. Five days a week, nine hours a day the Market will present tons of opportunities, and you must be ready to aim like a sniper. See what separates the novice traders from the elite is quite simple. Their Mindset. Elite traders understand that the Markets will present tons of opportunities, but how do they stay consistently profitable. Pattern Recognition. Remember you can do anything, but you can't do anything. Elite Traders are extremely selective. They focus on trades that fit their PERSONALITY, they do NOT trade randomly. Furthermore, FOMO is non-existent with elite traders because they understand the beauty of the markets. Meaning the markets are always in perpetual motion like a river, new opportunities will always present itself. Most importantly they understand the idea of staying liquid. When tthereis not an ideal set-up simply no deal, step away from the screen, go outside a live.
Patience: Thomas Edison once said ,"Many of Life's failure are experienced by people who did not realize how close they were to success when they gave up." This one quote means the world to me, and I hope does the same for you. Everyone has an idea to change the world, or themselves in some manner, that is what I call the Summit. They have this abstract idea for change,b ut what they don't see is the mountain. I don't care if you go sideways, upside down, there is still a mountain. Any success story took time to be created. If it were easy anybody could do it. But unfortunately ,that is not the case. One of the many great challenges in life is patience. Believe me ,I am still victim, no body is perfect, but we can change our mindset. Just envision everyday is a new opportunity to plant a seed. The next day another seed, next day one more seed. Then soon you will have a Garden. Day by Day, I wish there was a magic formula to solve this issue,but their is not. Trading having patience is not a key trait many have ,but is one that is essential for longevity. It takes time to create ant state of consistency, the warriors understand this. Take for instance Tim Grittani ( kroyrunner ) which took him 9 months to find consistency. He took $1500 and turned it into 7.6 Million. See you must understand that achieving sucess is a life long pursuit. It will not be done overnight, it's a life long process. Just keep moving forward and eventually, you will get there. Everyone's journey is different, but it's far worth it in the end.
Update: This week has been a blast, school has been great. This week the Markets have been slow. There has been plays, but none that fit my personality. I took a break away from the Markets. I must create "breath" in my trading. I will continue to track my set-ups and see what the results show me. I still have not traded a monetary account. I am fine with that, as I said being up in Knowledge is the best. There is nothing wrong with staying in cash. $PTCO was a dump, good job promoters. Have a great week y'all. Go Pats.
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