About a month ago I participated on a series of traders interviews on Amber Tree Leaves blog. I read all of them so far and I was pleased to see other investors and traders involved in options trading. I consider options as a great investing vehicle and excellent tool to supercharge your results. But it must be done right. If you do not trade options properly they can hurt you a lot.
Speculation is not what you want to be involved, but consistent step by step trading, small at first, larger later, is what you want. If you start speculating, predicting, betting, then you start gambling and lose money.
I have seen people, my friends – traders, spending hours drawing charts, predicting the next move and convincing themselves that the stock or market was overbought or oversold and then “next week it definitely must reverse” and placing their bets against the market/stock. They lost money.
Trading is not about speculating and predicting the market. Trading is about being aware of what’s going on and being able to adjust and manage your trade accordingly.
Since no one can ever predict the future how do you deal with a trade? That is your goal to make a trading plan which answers this question for you.
I advocate on this blog, that you shouldn’t be predicting and trying to know what the stock or market will do next, but what YOU will do next.
This took me a long time to finally understand. But once you get it, your trading becomes easy, smooth, and consistent. This was my “aha” moment. Since then, I trade with an incredible ease knowing that I do not have to be always right to have winning consistent trades.
Continue reading the interview on Amber Tree Leaves >>>
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