As a Trader, like with any profession, decision-making is key. Great decision-making leads to prosperous conditions and a career worth it’s weight in gold. Preferably, gold that was gained from a well-executed trade. On the contrary, poor decisions will lead to maybe putting on that red vest at Lowe’s and leading customers to that self-compressing hose they saw on an infomercial. A major threat to good decisions is anxiety. Let’s go to Webster for a second and define anxiety. Anxitey is, “apprehensive uneasiness or nervousness usually over an impending or anticipated ill.” Now let’s reduce this down, distill it a little bit (warning using my own definitions):
Apprehensive: not ready to pull the trigger.
Uneasy: not comfortable in your skin.
Impending: something is going to happen very soon.
Anticipated: predicted to happen ahead of now.
Anticipated is emboldened because it is the linchpin of this definition. Anxiety is just a fashioned prediction. It is not true or false. Nothing is true or false until it happens, or it doesn’t. Predictions are imaginary. In fact, predictions are imagined either by you or some analyst that you trust, nevertheless, still imaginary. Rumors, crowds, communities, and experts try to predict a future that has not become the present. That group-think can tend to build-up anxiety for a trader.
The easiest way to trump this built up but not yet true or false prediction is to read the charts and stick to your rhythm. When you do this, and you couple this with verifiable news and well-defined trends, you can stop making decisions based in someone else’s imagined future and live in the confidence of your critical and well-assessed reality. The next time you start to worry, grow uncomfortable, and feel as if you are going to prematurely pull the trigger on a trade, stop, think through the reality of the timing of the trade, then close a solid and profitable decision.