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How to play the game

Blog - How to play the game

Honeystocks.com

Over Trading Kills

Are you a Compulsive Gambler….. or a Trader?

This weeks blog is likely going to ask a few tough questions of you… and the more honest you are with yourself, the more you’re likely to benefit from the brutal / harsh reality of things that I’m going to lay bare before you.

Some of you reading this, will be ok… you’ll already have structure in place, and you’ll have a bit of discipline… which is good… but for those of you out there that have a tendency to jump into trades, and to jump into TOO MANY trades… read on… because I’m going to try to help you out a bit.

How many of you would consider yourselves Traders who have a compulsion to gamble? Please take a minute to think long and hard about the question, because it’s crucial… absolutely crucial to making the changes required to make more money from the Stock Market.

Having had hundreds of conversations with Traders around the world, I know what works, and what doesn’t work…. and I know what good habits look like, and I know what bad habits look like, so it just makes sense that you do what good traders do, and DON’T DO what bad traders do.

My most popular blog, and 1 that prompted hundreds of emails - is most definitely the 50 Habits of Successful Traders - and this blog is not a case of simply re-iterating the information contained there, the aim of this article is to better inform of you of what constitutes gambling, and what ISN’T gambling. I hope it helps in some way.

So What’s Classed as Gambling?

If you find yourself doing ANY of the following - then you’re gambling - and over the longer term - we all know as per Vegas rules - Gamblers will ultimately lose… so if we can limit the main issues highlighted below… you’re setting yourself on the road to being a better trader.

  1. You find yourself looking at a chart intra-day and jump into a position without fully considering the outcome

  2. You will action a trade based on what you read on Stocktwits or another Social Media Platforms

  3. You rely on others to make your decisions for you, and you’ll jump into trades blindly without doing your own due diligence

  4. You don’t have any kind of structure to your trading, and you have ZERO discipline in your decisions

  5. You find yourself “Averaging Down” and adding to losing positions - hoping the Market will rebound for you

  6. You DON’T have a fully formed rule set - EVERY successful trader I know - has a fully formed rule set - it is CRITICAL

  7. You don’t identify yourself as a specific style of trader, and you have a bit of a mish-mash style - giving no consistency

  8. You keep trading different Financial Products without knowing what you’re trading

  9. You keep applying inconsistent Technical Analysis Strategies to different charts - expecting consistency

  10. You DON’T prepare your charts in advance and you DON’T give your strategy the care and consideration it deserves

Why is it Important?

It’s actually pretty simple…. if you give everything to your craft…. and do what the best do…. how can you go wrong?

Gambling is actually 1 of the most difficult things for me to change… I can lead you to the water… show you the tools… talk about the discipline… show you what I do… show you the end result… but ultimately it will come down to your own personality type, and how badly you want to make the changes needed in order to be successful… are you willing to look at yourself in a candid way, and observe your habits with complete honesty and transparency? are you willing to over haul your game, and learn EVERYTHING needed in order to be the best trader you can be? Or are you happy learning 50% of the game, and getting 50% of the results?

I have 1 client that has turned $17k into $2.1m…. let that sink in… I won’t name names, but this is quite literally 1 of the greatest trading stories on earth… and he had 1 simple strategy, and I’ll happily share it with you…

It’s so brilliant in its simplicity - he identified a couple of stocks… he taken a few Options contracts … he kept adding to his position… he made lots of money… and this is Trend Trading 101… add to winning positions.

THERE’S A SAYING - THE TREND IS YOUR FRIEND UNTIL THE BEND AT THE END - I know… it’s cheesy right?… but it works.

Trading for $2 moves and trying to time the market on minute / hourly charts is the most exhausting / pointless exercise on the face of the planet - when the market goes up - you’ll look like a genius… but when the market turns… how many of you can make money to the down side, and how many of you want to make the REALLY big money?

I’ll leave that thought with you and let you think about the content within this weeks blog…. and as always… if you want to align yourself with EVERYTHING we do at Honeystocks.com - feel free to schedule a chat with us at the link below… even if you decide it’s not for you - I’ll still make sure you get something from our conversation.

Just tell me what you struggle with… and we’ll go from there.

Are you trading like this?

Sam McCallumComment