In the last video we have talked about if you would like to save time, money and effort and become a happy trader within the next 12 months.
In this video we want to talk about the fastest way to save you time, effort and money.
It is the ability to make a decision.
That sounds very simple, but it is hard to do.
As a trader you have the ability to change, manipulate or disimprove your trading at any time.
You have a countless number of entry signals, stop losses, charts, financial instruments and account types.
And for each kind of entry signal you can choose several parameters.
Will it be calculated for 20, 50 or 100 candles?
Will you choose a fixed, a trailing or an indicator based stop loss?
Will you trade Forex, stocks or futures?
You have so many available choices, so what is the right way to choose?
Here is what I found out after half a decade of automated trading.
You need to choose where you want to go and ignore the shiny things on your way.
Maybe you know the story of Ulysses.
He wanted to pass the sirens, but he knew that the sirens would sink his ship if he was able to hear their seductive voices.
So he asked his crew to tie him on the mast of his ship.
He knew that he would beg and scream once he was exposed to temptation, but he MADE HIS CHOICE BEFORE THE TEMPTATION OCCURED.
So here is what I think is the most important thing to become a happy trader within the next 12 months.
Here is what improved my own trading and what I consider to be more important than any entry signal in the world.
If you can remember this one thing, you might be ahead of 80 percent of all the traders out there.
And that one thing is: Make a choice where you want to go and what route you want to take.
Write down what you have decided and stick to your plan.
If you find obstacles that block your route, find a way to pass the obstacles and keep your course.
Because it is impossible to reach a destination when you waste your time going into wrong directions.
Imagine you would need to get from New York to Berlin within a day.
Would you try to do that with your bicycle or car?
Would you try to do that by travelling to the North Pole and the South Pole?
Would you go straight to the airport, or would you try to visit each street in Manhattan?
I bet that is not hard to answer, because in real life, you know how to avoid the sirens.
You have a clear understanding about what needs to happen to go from New York to Berlin within a day.
But when it comes to trading, there are so many shiny distractions and we lose our ability to stay on course.
Seduction is everywhere around – and it is tempting.
Why do you think your broker is offering free advice, bonuses and even free money?
It is because maybe your broker knows that you are most likely very prone to seduction.
Maybe your broker knows, that 80 percent of all new traders lose their money within the first 6 months.
All he needs to do is to make you trade a lot of money in a very short time.
You will feel as if you are losing money if you are not trading right now.
You will see the markets doing exactly the opposite of what you thought they should do.
And you will make most of your losses with your own stop loss settings and manipulations to avoid these losses.
The only way to pass the sirens without sinking the ship is to MAKE YOUR CHOICE BEFORE THE TEMPTATION OCCURS.
If you want to go to the Olympics, you need to choose a kind of sport and you need to do a lot of training in THIS ONE KIND OF SPORT.
You can’t be the best in ice skating, pole dancing and ski jumping, because you would never have enough time to invest the time, money and effort for all these three kinds of sport.
Make a choice, pick a route to your goal and avoid the sirens.
If you can do that, you will be able to get the one thing in place that will make things predictably better.
In the next video we will talk about what that one thing is that will help you to reach your goal in a fraction of the time you would need otherwise.
If you want to know what that is, you need to make a choice.
Would you like to continue to listen to this kind of content?