The #1 Skill for Trading to Win

As I said yesterday, trading is a skilled profession. The sooner you treat it that way, the better.

That said, there’s one skill that surpasses all others. It’s often difficult for new traders to get, because it’s more about acceptance than grasping a new concept. The good news is, it’s simple…

Revealed: A NEW Options “Glitch” That Can Multiply Money FAST

The Big Picture

What’s the #1 skill for anyone who wants to succeed at trading? If I had to pick just one thing, this is it…

Be Okay With Being Wrong

Look, trading involves risk, okay? There’s no guarantee that you’ll succeed. But one of the biggest mistakes that holds people back is not being able to accept when they’re wrong in a trade.

You have to learn to control your ego and understand that you’re going to be wrong. A lot. You’re probably going to be wrong every day, and you just have to be okay with it.

There are so many situations where a trade goes against you, and you have to be willing to stop out.

If you can accept that it didn’t work out, and cut it, it’s a difference maker. The sooner you can be okay with being wrong, the better.

Now, there’s a lot more to trading than controlling your ego and being okay with being wrong, okay?

Which is why I’m inviting you to join us for four live shows every week. Click on the image below to get access to the StocksToTrade Network.

Now, let’s put the idea of being okay with being wrong into context. Try this thought experiment…

Look At Your Own Trading Data

Go back through your trade journal, your own data, and take out your five biggest losses. How does that affect your overall PnL?

I’m just guessing, but I think you would probably have a completely different PnL. Heck, you might be able to take out one or two trades and your PnL would be massively different.

Now, you took those trades, right? So we can’t just wipe them away. What if you changed them to your number, your max acceptable loss?

For example, let’s say your max acceptable loss is $100.

Maybe you have unwavering discipline, but most people don’t. So, let’s say you change your five worst losses to $100 losses. What does that do to your PnL?

If it surprises you, you’re not alone. I remember, because I lived it.

Do Not Give It All Back In One Trade

I would go six months doing really well and then give it all back in one trade. If that one trade had been a $100 loss… oh, my gosh… it would be all the difference in the world.

Heck, you may be able to go back and change just one trade to a $100 loss, and all of a sudden, it’s a completely different scenario.

Now, that’s just for illustration. We can’t go back. Obviously, we can’t change the past.

But we can change it going forward.

My Take

When it comes to these stocks, you can’t be a true believer or a Kool-Aid drinker. Instead, use the chart to guide your decisions. Use the OODA Loop and the patterns.

Remember, it’s okay to be wrong, just don’t stay wrong. If you want to be a real trader, the #1 skill you need to learn is how to be wrong.

Watchlist

With the post-election market bounce, and Bitcoin back above $80k after the Binance hack, Riot Platforms (NASDAQ: RIOT) is the stock to watch today.

Yesterday, RIOT spiked in premarket and then faded into the open. After that it chopped sideways, respecting VWAP.

Look for breaks of yesterday’s Oracle signal at $15.89, with risk off of the lower Oracle support and resistance level. If you want a cushion, move the risk up to $15.60. Target the Oracle major resistance.

Keep in mind that RIOT is a much higher-float stock than what we usually watch here. So, it could be a better swing idea than a day trade.

On My Radar

• If today’s newsletter hit home, read: “Best Loser Wins” by Tom Hougaard
• The post-election bounce is on
• This weird psychological trigger changed the way I approached trading