How To Trade Like A Jedi Master: 7 Jedi Trading Secrets Revealed!
The secrets of successful trading has been with us for as old as we have had economic trade. Apparently, it spans parallel universes as well! Have you ever wondered where Jedis get their money from? *wink* Let’s hear a few secrets from the most respected Jedi of all, Master Yoda!
1. Adventure. Excitement. A Jedi Craves Not These Things
This clearly applies to trading, successful traders aren’t in this business for the adventure or excitement. Real trading is fairly boring, when the markets are open, you spend a lot of time just waiting for your setups to trigger.
You flip through your charts over and over and over. When something finally triggers, you pull the trigger and fire the trade, then follow your trade management rules without question.
Successful trading is quite monotonous really. That’s why many of us like to have our favourite music playlists playing in the background or we’ll go mad from the wait!
2. Do. Or Do Not. There Is No Try
Take the trade, or don’t take the trade. There is no in-between.
Sure, you could “try” a demo account, but that’s not real trading. And you will never really learn how to handle the psychological and emotional aspects of trading until real money is at risk.
So you need to really commit and take the leap, otherwise don’t bother leaping at all, because you won’t reach the other side.
3. Focus On The Here And Now
The most recent information, is the most relevant information. This holds true for trading, sometimes established support and resistance levels may get shifted slightly, based on most recent reactions to the area, that is fine and we should adjust our levels accordingly.
4. Do Not Overlook The Obvious
Sometimes when we have a strong bias, we tend to miss simple things which the markets are telling us right under our noses. This is one of the delicate balances we must strike as a trader.
The conviction in our directional bias on one end, and the responsiveness to changes in the market on the other. Hence, many say trading is also an art.
5. “You Will Know (The Good From The Bad) When You Are Calm, At Peace. Passive
How you can identify the good setups from the bad, is when you’re analyzing with a clear mind. One of the best ways to do this is by analyzing during the weekend when the markets are closed.
So there will be no distactions. Another way would be to analyze when you don’t have any positions in the markets. This is more suited for day traders as swing traders tend to have an open position on most of the time.
6. Luke: I Can’t Believe It. Yoda: That Is Why You Fail
Trading takes belief in many different aspects, in your methodology, your analysis in your setups, in your psychology. If you lack belief in any aspect, you won’t be able to follow the rules even during a losing streak.
Losing streaks will happen to everyone, don’t believe that you’re special and can avoid it 😉 During a losing streak is when you most need to follow the rules, to keep your capital safe and ensure that you live to fight another day. To reach success, you must first believe.
7. Control, Control, You Must Learn Control!
Master Yoda is once again spot on. We must focus on the things we can control. In trading there are large areas which are shrouded in uncertainty, we can only deal with this uncertainty through the tools we can control.
We can control when to participate in the market, we can control how much money we want to risk on each trade, we can control our responses to the ups and downs in trading.
For example, I know that if I had a trade which was in good profit, but I didn’t take profit and waited for more. Then suddenly the market goes against me and takes me out at breakeven. I’ll be totally on tilt!
As a new trader, I would have entered the market again and tried to make back the money which the market “took away” from my superb trade.
But now, I’ve learnt to recognize this is a situation where I will get emotional and revenge trade. So I control the situation by taking a little bit of profit as the trade progresses, and I will be very aware if the next trade I’m taking is a real legitimate entry or am I revenge trading.
So there you have it folks, Master Yoda has been dropping hints for us the entire time!
Now I know it’s really cliche but..
May the force be with you.
Safe trading everyone and happy holidays!