The one trading tip that all traders should know is:
Learn to say NO to a trade.
Unfortunately, most traders never meet a trade that don’t like and, unfortunately, that is what causes the most losses. It is also referred to as the FEAR OF MISSING OUT.
Warren Buffet recently said that the number one skill that the most successful people have is the ability to say NO. Why is saying NO so important? Because all success people will be bombarded with ideas or products, or, in the case of traders, trades. It is the filtering techniques that are used to decipher which ones have the most potential versus the ones that have a lower potential (aka probabilities).
One Trading Tip All Traders Should Know
The fear of missing out on a good trade will typically cause traders to enter trades that do not truly meet their criteria. Why? Because they are afraid that this will be the “BIG” one, the one that really makes a ton of profit. So they jump in because they don’t want to miss out.
Using a multiple time frame approach allows traders to filter out some of the losers because you are confirming the bigger move with the lower time frame. In the coaching sessions, we go one step further. We look to the higher time frames to identify both trend and bias and obstacles that will create losers on the lower time frame.
After the higher time frame analysis, we then look to the lower time frames for entry. This means that at any one time we are looking at three time frames to decipher the best trade entry. If they are not confirmed on the three time frames, then the trade is bypassed.
Even using the multiple time frame approach, traders must know when to say no and be confident that another trade is around the corner. The markets move 24 hours a day — rushing into a trade is not something traders need to do. Trading less normally results in a more positive experience and trading more normally results in a more negative experience for traders.
This one simple trading tip can make a huge impact on anyone’s trading because typically trading less normally results in a more positive experience and trading more normally results in a more negative experience for traders.