I got a call from an old friend who asked me- " OK if today was a possible reversal day what do I buy and what do I do ?" My answer was very straight to the point -"I don't know!!!"
A misconception that many market practitioners/traders have is that trading decisions are -"ONE SIZE FITS ALL". This expectation is a major reason why so many fail in the long run. One has to realize that TRADING markets require a TRADING PLAN that is tailored fit to ones unique situation. It is analogous to expecting every runner in a marathon to run at the same pace and perform equally well. Only the individual runner can determine exactly how to run the race based on his/her own understanding of ones physical and emotional capabilities.
Trading is very similar a coach or mentor can teach you the rudiments and the nuisances that trading entails,but ultimately your victories will depend on you and you alone.
So when I answer "I don't know" I am actually telling you to "Hey! don't put your trust on what I am saying,but develop your skills and your discipline to be able to answer that question yourself." I don't say this fastidiously .Many of us have a desire to become successful in trading ,but are not willing to put the time and effort necessary to develop the skills demanded. We want the quick answer -Buy this or sell that and expect accuracy and reliability . In truth even the so called experts and mentors including myself make countless mistakes. Don't think that the veterans are infallible that is farthest from the truth.
At the end of the road YOU have to take charge and take responsibility.
By: Jose Aranaz
Seasoned Trader, Senior Mentor
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