{"id":4444,"date":"2020-11-30T02:08:20","date_gmt":"2020-11-29T18:08:20","guid":{"rendered":"https:\/\/www.investagrams.com\/daily\/?p=4444"},"modified":"2020-11-30T02:11:55","modified_gmt":"2020-11-29T18:11:55","slug":"strict-but-a-little-reckless","status":"publish","type":"post","link":"https:\/\/www.investagrams.com\/daily\/2020\/11\/strict-but-a-little-reckless\/","title":{"rendered":"Strict but a little Reckless"},"content":{"rendered":"

We all grew up in an environment where we need to follow certain rules, do this, do that, do whatever. Follow them and they say you\u2019ll be guaranteed a success. Do the opposite and you\u2019ll end up facing unwanted sanctions or worse, end up incarcerated. The structure we have around us can be restraining to the soul.<\/span><\/p>\n

For some, trading is the escape. It is one of the ways to get away from the \u201cstructuredness\u201d of the society. It is a way to express your creativity by mixing and matching indicators or even drawing lines whenever, wherever, and however you like!<\/span><\/p>\n

There\u2019s no right or wrong way to do things in trading. But here\u2019s the catch, the escape can also be the problem. It\u2019s like your everyday coffee \u2014 giving you that high burst of energy momentarily, only to leave you crashing down to your feet, never getting back up unless you get a dose again.<\/p>\n

At the start of your trading journey, the tendency is you study indicators, how high should the P\/E of a company be, or how certain news can trigger the stock to go through the roof, straight to the moon. You just want as much information as possible to get that trade right!\u00a0<\/span><\/p>\n

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Do not miss the InvestaFest2021 — The Biggest Business and Investment Festival of the Country. Click the photo to join for FREE.<\/figcaption><\/figure>\n

Let me tell you something, trading has got to be one of the hardest if not the hardest skill to master. The reason is pretty simple, trading is about probabilities and it goes against our natural tendency to be right.<\/span><\/p>\n

Gathering all evidence that prove or disprove your underlying bias about a particular stock is almost automatic. Neglecting those that don\u2019t agree with you, only because you bought the stock and don\u2019t want to accept that the trade can go against you, you were blind sighted.<\/p>\n

I can\u2019t blame you, we all grew up wanting to be right all the time. That\u2019s human instinct. I mean, our ancestors won\u2019t risk going through the river full of crocodiles, right? They want to be as sure as possible to cross the river with their limbs still sticking together.<\/span><\/p>\n

Here\u2019s something most traders know but never really incorporate in their trading:<\/span><\/p>\n

\u201cYou don\u2019t need to know what will happen next to make money.\u201d<\/i><\/strong><\/h3>\n

I hold this principle dearly. Why? It tells us that we don\u2019t have to gather all the information about the stock like how the company has been doing, how many towers have been built, how many grocery stores have been opened, or how many indicators tell that it\u2019s going to go up. <\/span><\/p>\n

If, for example, another stock goes up without any logical reason, you can still make money! Consider this, if some random kid with a pile of cash, sitting at his mom\u2019s basement, decided to buy a billion\u2019s worth of the stock, he\u2019ll push the price up! No matter how negative the indicators and your bias about the stock are, it\u2019ll smash roofs and climb its way to the top!<\/span><\/p>\n

What\u2019s the solution? Find an edge and be strict with it. Edge is only a bunch of patterns\/scenarios that stack the odds in your favor. Then, enter that trade without thinking too much about what it should do next. If you have the probabilities stacked in your favor, you wouldn\u2019t mind taking the hits as you know your edge will play overtime.<\/span><\/p>\n

So, enter that trade and don\u2019t be afraid to push that button. Don\u2019t think too much about what it\u2019ll do in the next ticks or so. Just have an edge and follow your cut loss levels correctly. And always remember:<\/span><\/p>\n

Be strict but a little reckless.<\/i><\/strong><\/h3>\n
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Contributor:<\/strong><\/p>\n

\"\"<\/a><\/p>\n

Full Name:<\/strong> Geyzson Kristoffer S. Homena
\nInvestagrams username:<\/strong> @GeyzsonKristoffer<\/a><\/p>\n

Channels:<\/strong>
\nwww.facebook.com\/GeyzsonKristoffer<\/a>
\nwww.investagrams.com\/Profile\/GeyzsonKristoffer<\/a><\/p>\n

About the Contributor:<\/strong><\/p>\n

An Applied Mathematics graduate and a full-time teacher, Geyzson Kristoffer is a part-time trader who has been an active user of Investagrams since 2017. He spends his mornings, afternoons, and evenings learning about trading and reading books: Alexander Elder’s Trading for a Living being his favorite. Cohering to his passion and profession, he set his heart on teaching and helping newbies, but only the dedicated ones.<\/p>\n

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We all grew up in an environment where we need to follow certain rules, do this, do that, do whatever. Follow them and they say you\u2019ll be guaranteed a success. Do the opposite and you\u2019ll end up facing unwanted sanctions or worse, end up incarcerated. The structure we have around us can be restraining to […]<\/p>\n","protected":false},"author":3,"featured_media":4449,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":"","footnotes":""},"categories":[36,34],"tags":[],"class_list":["post-4444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-how-to-advice","category-latest-posts"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/posts\/4444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/comments?post=4444"}],"version-history":[{"count":3,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/posts\/4444\/revisions"}],"predecessor-version":[{"id":4450,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/posts\/4444\/revisions\/4450"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/media\/4449"}],"wp:attachment":[{"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/media?parent=4444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/categories?post=4444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/tags?post=4444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}