​Essence of Short-Term Trading: Timing & Self-discipline

WikiFX Strategies (12 Mar.) - The only thing serious traders care about is: what to do if the trend is in line/not in line with their judgments after entering the market.

The purpose of buying is to make a profit. Earn as much as possible if the trend favors you, otherwise you must abandon all illusions and stop losses. To trade is to put a bet on the trend since uncertainty lasts forever in the market. The gamble is worth it when the risk is controllable, but when the risk is large beyond your tolerance, you have to take a break from it for a while.

A successful trade can be divided into two parts: the ratio between profitable and losing trades; and that between profits arise from right decisions and losses suffered from wrong ones. The first ratio depends on timing, which directly affects the probability of success. However, it is just a part of trend trading, with another more important part lying in self-discipline.

According to the rules of stock prices, to sort out stocks with potential growth is to grasp the timing. While successful short-term traders know well about how to pick up profitable stocks and when to buy them, experts know clearly about the timing to exit the market. Self-disciplined as they are, they will sell out their stocks in the face of soaring stock prices. By controlling the risk, they will never see their profits being reversed.

Whereas how well you grasp the timing determines whether your decisions are right or wrong, how strong you are self-disciplined determines how much you win or lose. Your success is ultimately decided by self-discipline!

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