It’s summertime. It’s hot. But kids still need to get out to play.
So last week, I found myself sitting on a bench at our local park.
As I sat and watched my kids play, I couldn’t help but notice the other parents.
One mom shouted excitedly whenever her child’s swing got really high. But another mom hovered over her kid, making sure he didn’t do anything dangerous.
If you ask me, she was also making sure he didn’t do anything fun.
See, I’ve become like my grandmother. She always said if we got hurt, we’d learn not to do it again. So I let my kids play. They know more than we think they do, and they aren’t going to do things that are too dangerous.
You might argue I’m too lenient. But I say we should only hear kids playing at a park, not parents yelling.
It all comes down to different parenting styles.
And the same is true for the stock market. Whether you realize it or not, you also have your own trading style…
Is Your Trading Style Hurting You?
Some traders are “yellers.” These are the people who blame their losing trades on the market, their broker, the Fed, or the latest headline.
These traders are so busy blaming, they never have time to win. In my experience, they don’t last.
There are also “hoverers.” Some of my friends fall into this category. They take a no-risk approach to trading — which means that they inevitably fail. After all, risk and markets are one and the same. Without risk, there is no market.
For me, trading is fun.
Like with my kids, I let the market do what it wants. When things get too risky, I pull away for a time. Then I go back in.
I owe a lot of my success as a trader to this mindset.
As traders, we need to accept that risk is beyond their control. And we need to take responsibility for our positions.
When I take a loss, I take a loss. There’s no use blaming it on Putin or Covid or whatever the headline of the day is. I just need to focus on finding the next trade.
And as I look for that trade, I’m not thinking about my last trade… Or what I’m going to have for dinner… Or anything else for that matter.
Success comes from discipline. The goal is to make money. Nothing else matters.
So I take losses quickly, because I know they don’t affect my long-term wealth. I also take gains quickly because I’m a short-term trader.
I’m generally in and out of trades in a couple days.
But my colleague Andrew Keene often takes profits in mere minutes. He’s quick to enter and exit trades. And he maintains a supreme sense of focus as he does so.
But that doesn’t mean he’s all business, all the time. If you’re one of the hundreds of people who have signed up for Trade Kings over the last few days, you already know how much fun Andrew has in his live trade room.
When it comes to trading options, Andrew’s as giddy as my kids at the playground.
And so are his followers… Because so far in this bear market, they’ve won on more than 70% of the trades Andrew’s screeners have spotted.
That kind of track record is virtually unheard of in a year like this.
While other traders are shaking their fists over their latest loss, or agonizing over a “risky” trade setup…
You could be making money with one of the best floor traders of our time.
If you haven’t signed up for Trade Kings yet, act fast. Spots are limited, but you can still join here…
Senior Analyst, True Options Masters