Of all the stratagems, to know when to quit is the best. - Chinese Proverb
As traders, we are the consequence of our conditioning. Our behaviour is based on the journey thus far and our drivers. What drives us plays a big part in how we interact with the markets and how we react to the results of our decisions. Knowing when to give up before it is too late is a behaviour that we must learn.
I talk about pivoting early. Pivoting early is about discerning when it is time to change direction. Sometimes, rather than breaking down the wall, it is best to conserve energy and use the door!
Not every battle is critical to win a war - Milburn
Quitting isn’t always a negative thing. Quitting can be good and should be seen as a stepping stone to better things. It is all about perspective. It is all about where we want to go and determining exactly what we do not want in our individual journeys because, let’s face it - if you continue on a path for the wrong reasons, you might not necessarily end up where you planned to.
Winners quit all the time. They just quit the right stuff at the right time. - Seth Godin
So here is a list of things you can give up on in the journey to successful long-lasting trading.
- Give up on huge position sizing (at the start of your trading journey). You just don’t need that kind of pressure. Cut your coat according to your size. You are a small fish in a big pond. Do not get eaten by the sharks.
- Give up on losing trades! If a trade is going against you, let it. Losing small is okay!
- Give up on the news. But listen to every word of it. A lot of news is either fabricated or factored into price action. Just focus on price!
- Give up on over-trading. Preserving capital is far more essential and appealing than trading your way to bankruptcy. Be picky with where you put your money.
- Give up on over-exposure on open positions. Do not expose yourself to excessive risk. Try to avoid having positions in say, EURUSD, GBPUSD, AUDUSD and NZDUSD at the same time. This will expose you to excessive risk if volatility spikes in the dollar.
- Give up on trading on a whim. Have rules. Stick to them.
- Give up on trading with money you are not willing to lose. If you need the money, leave it in a current account. Trading with money you need is only piling unnecessary pressure on yourself and the account.
- Give up on trading outside “the zone”. If you are not mentally 100%, do not place trades on your account. Personal issues can have huge negative impacts on your trading. Internet connection issues can have you doubling up on orders and over-exposing your account.
- Give up on trading gurus!
- Give up on “traders” who talk about dollars rather than percentages. Trading is scalable. How much you made is not as important as the percentage gain. 10% is 10%. 10% on a $10,000 account is nothing compared to 10% on a $1,000,000 account but if you can make 10% on the former, you can make it on the latter!
A trader who makes $10,000 this month is not relatable. But a trader who makes 10% is.
- Give up on indicators. They are merely derivatives of price action. Do not make them the primary decision making tool. The most they should be is confirmation.
Start today, to take control of the one thing you actually have control over - you. Drop the bad habits and double down on your strengths instead.