It wouldn’t take a genius to realize that most people’s lives today revolve around quantity. You might often ask yourself how much you earn, how many e-mails you send and receive every day, and how much food you eat in a day or week. Numbers have become very vital elements in our and we have compromised quality leaving it behind amongst other not so important things. Moreover, with regards to acquiring more, most of us rely on trading which is an easier way to acquire more cash. The sad thing though is that trading does not give your rewards for trading as much as you can. It actually rewards you for acquiring quality and promising trades.
FOR THE LOVE OF QUANTITY
There are some common themes that you will most likely see in trading. These themes basically influence traders to over trade thereby letting their trading capitals to dwindle with trades that are of low quality. One of the themes is that of having an idea that if you make say for example, $100 on a single trade then you can make a thousand if you make ten trades. The other theme is that humans love finding reasons regardless of how illogical it is. For example, when your brain directs you to take a trade (probably out of boredom), it will begin giving you information to make sure that you will make that trade. This means that when there’s no reason for you trade, your brain creates such reasons.
MOVING TOWARDS QUALITY
The first theme mentioned above may be mathematically true. There are basically lots of opportunities every day. The amount of top quality opportunities you can find shall rest on the strategy that you will be using. However, you cannot stop great opportunities from arising. Whether these opportunities show up or not, what you have is only what you can trade. There will be some days without any trade at all while in other days there will be an abundances of trades. It takes discipline and patience to grab those promising opportunities the moment they surface. When you have patience then you can get quality results. If you try to over trade you will most likely lose trade and lose profits from possibly good trades.
The second theme mentioned above is quite difficult to beat. The initial step is to make sure that you have a comprehensive trading plan which tells you why and when you can get inside and outside of probable trades. If your brain is telling you something that is not in your plan, then do not bother taking the trade. This situation is hard to control but very slowly you can learn how to control your urges. You have to discipline yourself and stick to your plan even when your brain is already telling you to make the trade. When you are in a dilemma of sticking to your plan try to outwit your brain to stick to your plan.
PUTTING EVERYTHING TOGETHER
Amazing traders make trades once a price is very near specific levels or going through precise conditions. Once price conditions or levels are not there, good trader try to explore reasons to do away with these trades. As for bad traders, they look for reasons to take trades at whatever level no matter its importance or regardless of the specificity of the present condition.
There is a huge market outlook difference between a poor and a good trader. A good trader is an opportunity seeker who seeks towards only high possibility times. On the other hand, a poor trader tries creating opportunities everywhere and in the end losing his capital.
Trading is actually about quality. You have to focus your goals on the refinement of your strategy in order to generate a number of signals that are of high probability. Put in mind that there are days that do not have a lot of good opportunities. You also need to be well disciplined on keeping your capital for those probable good days.
Every money that you randomly waste through undisciplined and low probability trade is money that you can no longer use once there are good opportunities. Our world revolves by the pursuit of quantity. Never fall for this adventure and it is by then that you trading life can improve.