Daniel Bustamante | Instructor
One of the things that happens all too often in the retail trading world is the need to constantly be doing something. Have you ever been in a chat room, or Twitter (even worse) where there always seem to be a 'play' or something to trade? How many times have you been able to make $5,000 trading to see it just given away a week later? I know I've done it, a few times in my career, and it's annoying.
It's a lack of patience.
The market sets up situations where large portfolio shifts tend to occur, and in my experience, it's during those times where you want to structure a trade and then allow the market to do the heavy lifting for you.
It's one of the reasons we don't offer a stand alone 'day trading' room anymore because there are simply days, even weeks where there is nothing to do. I remember a time a few years back when we first started Landshark and I led a E-Mini futures trading room. There was about a week where we didn't do much, not a single trade. I later received an email from a client saying that he wanted more trading ideas.
My answer? Why? Do you want something to do or do you want to actually make money? He didn't like that.
This is also why I take issue with the financial education community and the day traders who tell their followers that you need a daily stock watch list.
It's also why I like to swing trade. I made $1,700 on a 30 day hold this month on Square.
It's all about patience. The market (real estate and stock) should never force you to depart with your money if you're patient.
And sure, people like to call the markets gambling, I'll take that then if risking $600 to make $4,500 makes me a gambler like I did this week on NFLX. The thing to remember as some of you are going through the Core Foundations of Trading program this week is that learning to run a trading business takes time, as do certain market situations.
So if you find yourself anxious to make a trade or put money to work, it's likely that this industry won't be a great fit for you. But if you can be patient, calm and cool as a cucumber waiting for your hand then you'll surely have no issue being consistent and turning a profit no matter the amount.
I hope this blog piece helped.