Trade The Journey

Trade The Journey

The Need to Be Right!

Releasing the need to be right is hard for us to do.

 

Being right means a lot to me, but so does being wrong. When I’m right, whether I’ve won an argument or predicted an outcome, my perspective is validated. My self-esteem is validated. I am validated.

When I’m wrong, I feel as if I am a failure. Every negative experience I’ve had up to date is magnified. I should have asked for help. How could I have been such an idiot?

On the surface, this sounds like a psychological problem, not a financial problem. I’ve attached meaning to being wrong and right. Each is weighing on my conscious differently, depending on the situation. That’s a psychological problem; Finance is numbers and equations.

The need to be right permeates all aspects of our life.

 

This line of thinking is not beneficial in making a successful trade. It doesn’t help make decisions in life more natural either.

It makes life harder. It makes us hesitate when we see something of value. It makes us less likely to engage in anything risky. It also makes it less likely for us to live our truth.

Mark Douglas spoke of trying to eradicate this line of thinking. This type of thinking makes winning and losing more critical than it is. Trading isn’t about being right or wrong.

Trading is about being profitable. When you trade beyond being right or wrong, you are trading with a probabilistic mindset (Trading in the Zone). It means knowing that with a system, edge, and many opportunities, you will ultimately reach profitability.

 

I don’t know what will happen next. I could be right; I could be wrong.

 

I’m closer to accept this than before. This past week was my first full week of trading that I completed on think or swim platform. Of course, I’ve been trading on a demo account while learning the platform.

Think or Swim allows you to rewind time and pick any trading day to revisit and trade like it was the present.

At times it was hard for me to look away from the screen. The flashing numbers and dancing candlesticks memorized me at times. I was trying to remember everything I had read so that I could apply it at the present moment.

It didn’t work. It clogged my thinking.

I just tried to remain in the present. It was intimidating knowing that much money was moving between people in seconds. One-hundred shares exchanged at a price tag of over two-hundred thousand.

 

In society, it takes years for someone to earn two-hundred thousand, and we receive it by trading time.

In this market, money moved in a matter of seconds based on a different perspective of its future value.

Think about that.

 

The money didn’t move because we earned it or thought about it in an inspiring way. Big money doesn’t move like that.

Watching the money move on the screen on the daily chart is hard to grasp at first. It could be moving for any number of reasons, none of them I know for sure.

I can speculate, but I’ll never know for sure. The indicators I used were the RSI, Volume Rate of Change, Moving Average Convergence/Divergence, and two simple moving averages.

I like using indicators that are easy to understand. Prices are mostly random, so all you need to know is how fast they are changing and in what direction they are trending.

 

Then you take your best guess preparing for the worst and hoping for the best.

 

Most of the days I traded, I was profitable. This week, I’ll be working on the opening and closing trading times of highly liquid stocks.

Once you understand the indicators, the screen above won’t seem so intimidating. The charts with moving lines are a graphical presentation of the statistical mathematics performed in the background.

The sales numbers are to the right of the screen, and the limit bid/ask orders are at the bottom.


I’ll keep you updated on my progress.

As always, be a legend in your skin.

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