Today I am reminded how easy it is …

Hello Traders,

Today I am reminded how easy it is to go down the revenge path that leads to destruction.  There can be no good from going down a road of revenge and hate.  It will burn in your soul if you do not simply let it go.

Pride leads to disgrace ...

Pride leads to disgrace, but with humility comes wisdom.  – Proverbs 11:2, NLT

Music to Listen on Post:  Phillips Craig & Dean – In Christ Alone – Medley

How easy it is to slip down the path of getting back against another person whom God has created.

We are all God’s children.

I am reminded of the passage of treating others the way you want to be treated.

I believe, if you want to go down a road of trying to right every wrong, then this in the end will lead to a place where you can’t let the past go.

It is very easy for the ‘old’ me to seek revenge and go to war, but the ‘new’ me says turn the other cheek.  For the longest time I didn’t understand the power of simply being meek.  I felt being meek is being weak.

In fact meek and weak rhymes!

Bruce Lee

Bruce Lee

“The mind is like a fertile garden.  It will grow anything you wish to plant – beautiful flowers or weeds.  And so it is with successful, healthy thoughts or with negative ones that will, like weeds, strangle and crowd the others.  Do not allow negative thoughts to enter your mind for they are the weeds that strangle confidence.”  – Bruce Lee

What do I know about trading over my 25 plus years of trading experience?  Markets change some go in and out of favor.

The challenge still remains … it is easy to trade with a lot of money and follow a trading discipline of 2 to 5% risk per trade taken, but when you have a small account you must take on more risk to get into the 2 to 5% risk category.

This requires discipline, focus, and confidence in your trading strategy/method, but also confidence in yourself to execute and not get caught in the trap of trading.

I have found my three greatest weaknesses of trading a small account to be:  trying to get it all back in one trade, revenge trading, and self-destruct mode.

I know how to trade in trending markets, and to take profits and allow the trade to maximize the profit of the trade, but the other side of this is how do you trade in non-trending markets.

Better yet, should you trade non-trending markets?

I think you should also classify the market into fast and slow moving markets.  When the market is moving slow, you find it easy to get in at the price you want to be, but the other side of slow moving markets is it takes focus and discipline not to allow your guard to drop.

So if there are trend and non-trend markets, and fast and slow moving markets, then there are easy and hard markets to trade.

What do I mean by easy and hard markets?

So as I continue to trade in the crude oil market I find it flowing like water and moving in waves.  Some days you find yourself flowing correctly with the market, and others you find yourself moving against the market and creating loss.

FOCUS!

FOCUS!

“To generate great power you must first totally relax and gather your strength and then concentrate your mind and all your strength on hitting your target.”  – Bruce Lee

On a previous post, I talked about being like water.  You must move with the wave and not against it.  If you know the market will flow and crash then you must be prepared for both realities.

So how does one achieve a mind like still water?

Ed Parker with Elvis

Ed Parker with Elvis

“One learns to go with the flow of life, the current of existence.  When an untoward event occurs in your life, react to it without haste or passion.  Realize that in almost every instance you probably have more alternatives than you think you have.  Hold still a moment before acting or reacting and consider the alternatives.  Then, having decided upon a course of action proceed calmly.”  – Ed Parker

So here is the point or the moral of the story …

Markets come and go … people come and go … but your trading discipline and focus will be the one determining factor of your success or failure as a trader.  You can create a trading system that captures a winning percentage of 30% and be a winner in trading with proper trading discipline and focus.

So the way you trade and take off contracts will be the one key to your overall success.  I am sure of one thing in trading … you will win if you take less on your losses and more on your winning trades.

If you follow a discipline and focus of taking more on your wins and less on your losses … you can be a winner in trading!

If you allow yourself to fall into the trap of trading … to trade into areas you are not sure what to do … or you simply don’t have a strategy for the market the way it is trading … then you have given the one edge you have over the market …

Traders Edge

Traders Edge

YOUR EDGE as a trader is to always trade with your EDGE!

Consistently trade with what you know … and do not trade into areas where you are unsure what to do.  Continue to develop yourself as a trader and allow time to be the master of your education.

YouTube Video Series:  Tiger decides to give back …

 

Good Trading,

David ‘Tiger’ Knight

P.S.  Trading Video – Testing a Momentum Indicator to my tick chart.

 

 

About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.