Being Wrong Is Part Of A Trading Plan
Being Wrong Is Part Of A Trading PlanJanuary 8, 2021
At Simpler Trading, we don’t strive to catch every trade.
Our only goal is to make money. At the end of the day, week, and year… that’s the goal.
Sometimes people aren’t clear on that goal, and they don’t realize that along the path to gains we will pass on many potential trades and there will always be losses. Traders are wrong regularly – some trades just don’t work.
This is no different than other ways to make money.
Our society worships people making millions in pro sports and these successful athletes are “wrong” much of the time. Superstar pro basketball players only hit about 34% of their 3-point shots, superstar baseball players get hits around 30% (or less) in their trips to the plate, and superstar football quarterbacks might complete 66% of their passes on average.
People in more “traditional” careers strive daily to work hard, overcome mistakes, gain experience and training, earn a paycheck, and ultimately strive for career and financial advancement.
Similar to “superstar” athletes and “traditional” careers, traders can create profitable opportunities and not be perfect. This is a “normal” trading scenario… and traders can succeed at a higher percentage level than even high-paid athletes.
Focusing on the trading goal of making money, the key is to have the right tools and develop skills that build methods, strategies, and discipline while maintaining a steadfast trading plan.
While focusing on this important goal, traders can develop skills at the same time on the next important goal – keeping the money they earn.
Simpler has a variety of opportunities to discover training and connect with like-minded traders to help boost necessary skills.
And this moves us toward those key goals of trading.
We Saw: A market working through the news, events –
- Market, economy focusing on rebuilding
- Covid-19, vaccine distribution are still concerns
- December job losses come to light in New Year
We’re Watching: Active plays in key stocks, sectors –
- Rally signs into next week
- Growing valuations of Big Tech companies
- Setups signaling strength, momentum to the upside