Swing traders are in trouble…
As of today, most of you believe the market never goes down, and you can’t make a mistake.
If this is you, you are wrong.
Consider this advice to get collision on your car before you get into an accident.
Am I bearish on the market?
I live in reality. Too many of you are sending emails saying…
“It’s OK, the market never goes down for more than a few days…”
If you are in that camp, that is going to be an expensive belief.
Swing Traders Lifeboat
Swing Traders Paradise
This chart of the QQQ ETF is beautiful.
Buy. Hold. Close your eyes.
Not a plan.
Much of the learning in trading consists of being able to tell the difference between high-probability trade and those that are poor decisions. The reason why I worte this post is becasue swing traders are judging the quality of their decisions based on profits.
I know, I know, I can hear you thinking- “thanks Captain Obvious…”
Hear me out.
Because a swing trade made money, that doesn’t mean it was a good idea.
One of the best ways of improving, is by paying attention to past mistakes and documenting them in your trading journal. The problem with that method right now, is there are few personal mistakes to correct. The market is making you feel like a swing trading genius.
No book or mentor can tell you how to handle losses, but…you must be prepared to accept them. You must have a plan for trades that do not move against you.
These mistakes are crucial because only when you admit there is something to work on, can you begin to concentrate on making adjustments. By reducing the bad trades, you become a complete trader.
The first step is admitting there is room for improvement.