Stop emotional trading and make money in stocks & options // Stock investing tips, Options trading 101, stock investing tips, stock investing basics, stock market basics, options trading for dummies, options trading for beginners welcome to looking at the markets with David Moadel
today's video is going to be a little bit philosophical little bit
motivational and hopefully very practical
so today's title is trading stocks and options is uncomfortable and unnatural
so what does that mean well let's take a look at a screen capture from today's
price action and the spiders and the Vics don't expect the markets to make
sense
and when we look at this yeah it doesn't seem to make sense does it
when you've got when you've got the SMP 500 up substantially and also the
fear-gauge is up
it doesn't make sense and you know what it doesn't have to
that's how the markets are of course the markets are manipulated
unless you're planning on changing the world
just accept it and move on you ever see that kind of debate going on
maybe on Twitter stocked wits or chat rooms or other message boards where
people argue how the market is the markets are manipulated
they're not reasonable it'sit's you know propped up by the Fed or QE or central
banks or algos high-frequency traders whatever they're going to argue that the
markets are skewed
yeah sure ok so what are you going to do about it
are you going to run for public office and change that
that's cool but if not then you need to war if you're just going to be a trader
or investor within the system that exists
then you're just gonna have to work with it you're just gonna have to accept it
quit being angry about it quick you know quit being frustrated all the all the
time and just accept it and move move on
work with it if you're a trader who chases after big price moves then the
markets might seem rational until they move against you and I'm not saying
trend trading is wrong
I'm sure it works for a lot of people but i don't think you want to give in to
the temptation to try and trade to just follow after big moves have already been
made and I call that chasing price chasing me again maybe it works for some
people it doesn't work for me so I believe in mean reversion that means
after big big extreme price moves
I believe that markets overall are going to attend
they're going to tend to retrace those big moves they're going to come back to
their typical price range
thus I force myself to do what doesn't feel normal or natural
i buy in to weakness and I sell into strength again that that may not feel
like the natural thing to do because you're going against what a lot of
people are going to tell you to do you know the lot of people are going to tell
you not to do that you're going to be going against the crowd and it's going
to feel like this guy an uphill battle but that's what I believe in and it's
worked for me so that's what I do
I believe that success in trading or investing can be achieved if you're
willing to resist the innate hardwired tendency of humans to follow the crowd
you got to be like this little guy over here he's surrounded by people who all
tend to want to follow each other and you have to not necessarily do the
opposite all the time
I don't believe in that either but think for yourself
it's not easy to do but that's what selling in to weakness spying into
strength
that's I'm sorry behind in to weakness and selling in the strength means you
have to be like this guy sometimes and do the opposite of what everybody else
is screaming at you to do or not do in other words be what you are not what the
others want you to be if you're a swing trader or a long-term investor and I'm a
swing trader myself understand that your trades will likely move against you at
first
possibly for days weeks or even longer agonizing over every little price
movement isn't going to help you
you're going to end up the way this man feels not good
stepping away from the screen or from your phone or whatever it is that you
use to watch the markets stepping away for a while might be the best thing to
do
now again if you're a day trader than stepping away from the screen for too
long of a time probably isn't a great idea because day traders need to monitor
the markets but if you're a long-term investor for example
watching every tick in the in the markets isn't going to help you even if
you're even if your string swing trader who holds for days or weeks
you know if that's what you are then be that don't behave like a day trader and
watch every little price movement
it's not going to help you
follow your trading plan and ignore the boasting and shouting of the message
board and chat room gurus and I put that in quotes that are out there they'll
tell you to quit fighting the trend
I hear it all the time now maybe they're trying to help you
or maybe they're not doesn't matter it's your money your money not theirs
so stick to your plan your principles even if it's not normal or natural
well if you'd like more motivation more help with this
just submitted somebody to talk to about your finances investing trading
I can help you with this contact me at David Modell @ gmail.com
I'll be glad to hear from you thanks a lot and i'll talk to you soon