One of the toughest challenges of trading is to battle FOMO (fear of missing out). We’ll spend hours searching for a pattern that we like and has worked well for us. We log on every morning with the hope of seeing things heading in the direction we want, visualizing a big gain in our account at the end of the day. But then the bell rings and trading starts and it becomes infinitely easier to change the plan and chase a current in the ocean.

We talked about earnings recently and how much of a wild card it can be when looking at charts. It is a perfect example of what can happen if you don’t stick to your rules. If you enter a trade and your target is to make $500 and lose no more than $200, what do you do when you see the green $500 appear on the screen? Do you exit the trade and take the win? It is easy to say that you would but if that trade is going up quick it is hard, maybe foolish, not to see how far up it will go.

In just one minute you can have one of the most important trading tips you'll ever get. Click here to see your million dollar minute.

How about the other way? Your position drops and now you are at $200 in the red but it is sitting there. What if it rebounds and does exactly what you originally expected and shoot up past a $500 gain?

We have all faced these choices and the right answer is the answer that is right for YOU.

Know your trading style and risk tolerance. But know it before you trade. Given the choice between locking in a $500 gain that was your original target or taking on more risk on the chance that it goes up more, what would you do?

We shared a good article about how long to wait for a trade and some ideas on giving yourself some more time a couple months ago and it is a good read you can see here.

Ultimately, trading is an individual sport and requires self discipline. We spend hours searching for patterns and looking for the right trade but how much time do you spend perfecting your self discipline to make sure you follow your own rules?

Keep learning and trade wisely,

John Boyer


Market Wealth Daily