Pursuit of Wisdom

Wizard      You have heard it said that there is no “Holy Grail” to trading, and that’s correct. Right? Well, yes, it’s correct, but then there is a facsimile that can come pretty close: it’s called Wisdom. Surprised? You shouldn’t be; after all, like trading skill, you have been accumulating this wisdom piece-by-piece since your trading infancy. Did this wisdom come from some long, gray-bearded wizard standing on a mountaintop? No, it came from risk taking, psychology evaluation, stabilizing your emotions, knowledge gleaned from trade hesitation, your role models, your mentor, and introspection lifted from your journal of trading mistakes.  All these “particles of wisdom” – when applied to your trading skill – become the keys to consistency, which propel your methodology to profitability and yield financial success as the reward for your endeavors.

In trading, as in life, the pursuit of wisdom is never ending. Always desiring to be the recipient of trading input, to be wiser today than yesterday, and to seek wisdom from those more experienced in the markets than you are your goals.  At times, it may take humility to do so, but the results in your account will be astonishing.

      Have you picked up any “golden nuggets” for your trading wisdom arsenal yet today? Well, if not, here are a few that you might want to consider:

  1.  Never allow a profit to become a loss. If a profitable trade turns into a losing position, then you have lost twice. Consider taking a portion of the trade as a profit, and if your long term opinion is favorable, then let the rest ride for the duration of the trade.
  2. Always start the day with your focus on good trade execution and not on big money. Money will take care of itself. A rational mindset trumps irrational behavior every minute of a day.
  3. Oversee each day carefully, but let a profitable week be your goal.  Individual trades may go against you, but a week of stellar opportunities will await your mouse click.   In other words, don’t gamble on a bad set up just to get even for the day.               

       Trading is the greatest business in the world, and wisdom can empower you to stay in this business for as long as you choose to do so. Enjoy the journey, your success, and your career.           

About the Author Todd Mitchell

Todd Mitchell is the CEO & Founder of Trading Concepts, Inc. He's been trading since 1994 and has mentored over 12,000 traders from Wall Street to Main Street. He's an expert at developing strategies for creating more consistent daily, weekly and monthly income.

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