You Don?t HAVE To Be Trading

As a novice trader, you'll often feel the need to trade.

You may be bored or frustrated. Or you just want to try a certain type of trade.

STOP!

Realize that you don't have to be trading all the time to be successful. In fact not trading is often the very best decision you can make.

The market tells you when to trade. If you feel the urge to place a trade or find yourself chasing a trade, walk away from the computer. Better still; take the opportunity to meet a friend for coffee.

The trades you do when you're feeling the "need" will usually be lemons ? and leave you with a very bitter taste in your mouth!

They will usually not have clear signals, but you've convinced yourself they are there. After losing your premium, or much of it, you'll look back and wonder how you could possibly have entered that trade. It's happened to all of us, so don't be too hard on yourself. Just don't do it again.

The market is going to do what the market is going to do, not what you need or want it to do!

And remember the old saying, "If you can't see it, it's not there". So if you stand back from your computer and the chart pattern or signal doesn't jump out at you, it's not there.

EASY IS BEST

The novice is constantly staring at charts, looking for and often inventing signals. If you have your strategy in place and you wait for the patterns to form, your entry points will FEEL easy. They will be obvious ? you won't need to be searching for them.

WRITE IT DOWN

Remember to keep a log book. We keep one, which includes any potential trades ? those which look like they will possibly provide an entry in the near future. It's good to see if they eventually develop into a trade. It will help guide you up to a point where you make a decision whether to enter, or to leave it alone.

Also, when you enter a trade, log it in your book with a few details and, commit to a stop loss point and a profit level where you will be happy to exit the trade. Remember, don't be greedy ? or you'll see your premium reach that point, pass it and quickly drop back past your original exit point. You'll then see how you would have been happy to exit at your prescribed price!

Much of the time there won't be any trades for you to enter, so it leaves you with plenty of spare time for gaining extra knowledge and enjoying life. You probably won't trade more than a few times a week. So, you can see, there's a lot of time to be analysing charts ? and feeling the NEED to trade.

Be strong and disciplined!

David Chandler

Ordinary People Making Extraordinary Profits!

For free mini-course on stock and options trading click the following link:

http://www.StockMarketGenie.com

Or visit our blog at:

http://stockmarketgenie.blogspot.com/

The above comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and hasn't worked for us personally. If you wish to trade or invest in the stock market you should obtain advice from a registered licensed advisor.

---

The 1% Solution

You probably know the story of Sherlock Holmes and the... Read More

Managing Investing and Stock Market Risks

Reduce your investing and stock market risks by:Setting your sights... Read More

Quality Investment Information: Standing Firm In the Face of Opposition

THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More

Mutual Fund Expense Lies

When purchasing mutual funds we are cautioned to read the... Read More

Laws and Efficiencies and Theories of Diminishing Returns

The basis of diminishing return discussions surround such simple notions;... Read More

How to Maximize Your 401k Mutual Fund Returns

When it comes to 401k's there is an overabundance of... Read More

Investment Capital Gains

Have you bought any mutual funds this year or late... Read More

Investing Basics - Stocks, Mutual Funds, Real Estate & Online Investing

Have you ever thought of investing? Do you have a... Read More

The Seven Mistakes All Novice Traders Make and How to Correct Them

We learnt the following the hard way! If any of... Read More

Bad News is Good News

For weeks, no, months we have been bombarded with nothing... Read More

Stock Options Trading Strategies - Lean

Professional stock options traders use the term lean to refer... Read More

Again With the Bubbles?

A few years back ? it seems like an eternity... Read More

9 Deadly Trading Mistakes!

The following are a list of nine things you want... Read More

Trading Tips No 6: The High Cost of Low Cost Stock Market Information

It has been said that low cost or even free... Read More

How Eating Bitumen Made Me a Better Trader

Trading is a fascinating activity.There are so many layers to... Read More

The Inside Scoop on Mutual Fund Rip Offs

The bear market that showed up at the end of... Read More

How To Make, And Keep, Money Trading Stocks

If you are serious about making and keeping money by... Read More

Big Buildings Can Mean Big Economic Disaster

AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More

So, What is This Stock Market Thing Anyway?

We've all heard of the stock market and probably have... Read More

How To Be A Winner

Everyone who invests in the stock market wants to be... Read More

Two for the Money

Look back over the years and try to remember how... Read More

Who Knows?

The Shadow knows. Remember him? It seems a shadow has... Read More

Money, Insanity and Wall Street

Money: the most charged word in the planet. It means... Read More

Making a Stock Watch List

I am taking the time to help others learn the... Read More

Choosing a Stock Broker

If you were to find that you had some severe... Read More

Living Trust Investing: Income Considerations when the Grantor Dies

A common problem I often see when working with living... Read More

Losses, not Profits, will Stop You from Trading in the Market

Should the market turn against you, it is important that... Read More

Economists

In today's volatile and confusing stock markets everyone is searching... Read More

Lies, Damn Lies and Mutual Fund Returns

How many times has this happened to you? You're at... Read More

Cash Is A Position

I go to the Money Show every year to visit... Read More

Trading Baskets II: The Crapolio, A Roll of the Dice in the Stock Market

In a previously written article, we expanded the use of... Read More

Protect Your 401K

Checked your 401K lately? Going back to about a year... Read More

Selling Strategies - Setting a Stop Loss

Sometimes the best way of lowering exposure to risk is... Read More