I have known some great analyst. They spend hours and hours looking at charts figuring out good prices and reasons. Trying to come up with that perfect equation/setup/risk free trade. Risk free trades are expensive; they cost time, cost psychological capital, and require huge opportunity cost. They are easier to find from the inside not the outside.
Looking for the wrong short cuts.
Those that are looking for the perfect setup, in my opinion, are trying to take a short cut. There are not short cuts in trading but there are short cuts in the process of trading. Improve your process and you will be able to naturally find “better” trades. There are two things you can focus on, yourself and the market. The first should be taken care of before you trade and after a trade. You will never be able to take the emotions completely out but you can minimize their negative effects.
Predictability is bad.
If the market was predictable than there wouldn’t be much of a chance to make money because the movement would be minimal. The market would not have its normal mechanics. There would not be many view points only one. Secondly trading is about executing, until you stop trying to predict you will never be able to focus on execution. Execution is taking advantage of the market in an efficient, personalized way.
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