Good Trading Is Boring Trading

With the markets working off some buying pressure, yet still firmly in an uptrend, I’ve found myself patiently waiting for good opportunities. In fact, it’s been a little boring to be honest.Below are some mundane tasks that have fulfilled my excitement quota:

  • Checking my mailbox and finding something other than junkmail
  • Deciding on what to eat for lunch
  • Finding a daytime baseball game on TV
  • Trying to guess whether it’s UPS or a random solicitor knocking on my door at 2:00pm
  • Getting that hot new Reformed Broker or James Altucher blog post in your feed reader

However, I started thinking about it, and if your trading is more exciting than any of the items above, you are likely doing something wrong. Good trading is boring, and if you find yourself flipping out every time you hit a winning trade or freaking out on a loss, you are either over trading, over sizing, or still learning how to trade.

In regards to this, I’ve recently noticed a lot of emotional tweets on the Apple, Inc. (Public, Nasdaq:AAPL) and iShares Silver Trust (ETF) (Public, NYSE:SLV) streams and its always dangerous when people get so emotionally vested in a stock. Once retail traders get involved in tickers like $AAPL and $SLV, they tend to get married to it, and that is a dangerous game, especially when leveraged to the hilt.

With all the margin allowed traders these days, its even more important to be patient and make sure you have a trading plan to follow. The decision to enter or exit a trade should be made for you long before the trade setup triggers, so there shouldn’t be any rash trading decisions made in the heat of battle. I’m not saying you shouldn’t be happy or upset with trading results (we are only human after all), but a trade should not be an emotional roller coaster fraught with margin calls and scrambling to the bank to wire funds.

 

Good trading is boring trading,

 

Joey

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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