Trim the hedges or not?
When directional momentum stalls after you've established your position, here's what to do.
All trades have a beginning, a middle, and an end. Most traders focus too much IMHO on the entry (beginning) and the exit (the end).
Mismanage the "middle" and it can mean all the difference between a winning trade and losing one.
Revert to more simplicity when you get in a rut.
Great traders focus on their behavior all the time.
When you're starting out you won't have the luxury of having these feelings if you blow up two months into your trading career.
Keep your frequency of trading to a minimum until you learn to trade one style and own it. Limit yourself to initiating two trades a day, else you might find yourself chasing everything that's up $2 / share because you feel you're missing out on many trades.
Most traders fail to reach their true optimum ability and optimal performance because they have no sense of imagination and the don't challenge themselves.
The biggest problem with being a chart-reader only trader, is that finding names for your watchlist is terribly inefficient.
Don't plan to get tasks done, else you'll be stuck in blue collar despair.
Make goals that include increasing assets under management, revenue, net income, and consistent behavior around following your rules.
That's how you'll grow your business and your wealth.
When I set personal goals alongside my business goals, I tend to hit both. When that happens, life is good!
Already hit your goals? Set new ones that are realistic and attainable.
Don't forget to set your "FU" or stretch goals also. You might not hit them, but you get your subconscious mind thinking about them even when your conscious mind is working on the attainable ones.
You just never know...
You need two variations of your marketing message: one for individuals and high-net-worth families, and another for institutional investors and allocators.
These two segments speak different languages and their concerns are very different.
For example, if you launch into your pitch loaded with industry jargon to a HNW family, they won't understand a thing you're saying, whereas the allocator will.
If you waver too much, you'll inadvertently end up trying to be everything to everybody. That tactic doesn't work.
Learn to speak to your audience and be mindful of the subtle variations that will make you a success speaking to both segments.
Write out a short list for some of the things that you're grateful for. This is your Gratitude List and it can help you feel a little bit better about things when you think nothing is going right.
You can try this just when you think you're gas tank is empty and you don't know where your next source of motivation might come from. Do everything you can to remain persistent and determined.
If you have no trading edge, where you execute your business doesn't matter.
Putting space between yourself and the market can be refreshing.
You don't have to do this only when you're losing.
You can learn trading faster intellectually rather than emotionally.
That's why it's easy to understand, but hard to do.
Your emotions can get the best of you, stop you cold in your tracks, kill your confidence, and keep you at the level of a very knowledgable spectator.
Just like professional athletes and competitors prepare mentally for a match, so can you.
In fact, you have to. You can't just wing it.
Intentions equal results.
Put it in your mind that you are going to achieve your goals then go and do it.