Growing up on a farm, I developed a strong work ethic. But there are other lessons from farming that apply to trading. First, this from my mentor Tim Sykes.
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Like so many new traders, I chased a lot when I first got started. Once I made the decision to stop chasing and only trade solid setups with a good risk to reward ratio, everything changed. That said, it was only years later that I realized how I learned some of the same lessons from tilling soil.
The Big Picture
I know this might sound strange, but bear with me. Even if you’re not a farmer, you know what tilling is and you probably have some ideas about farming. What you might not know is that success in both requires a similar mindset.
Farming and Trading Both Reward Pattern Recognition
A good farmer doesn’t rely on a specific date to plant. They read the sky, the smell of the earth, and the “feel” of the season. It’s part calculation, and part intuition.
Now, you know I always say trade the pattern and trade the plan. But at the same time, the longer you trade, the more you develop a feel for momentum. You start to know when a level is more likely to hold.
All the book smarts in the world can’t make up for that.
Both Farming and Trading Punish Impatience
2026 © T. Bohen on the tractor with my nephew
Over-tilling destroys soil structure and causes drainage problems. Over-trading blows up accounts.
At the same time, when you till the right way, it prepares the soil for planting. It helps with root development and nutrient uptake.
Trading is similar. If you trade the right way in the beginning, it prepares you for later, when your account is bigger.
That urge to do something, whether it be to mess with the crops or trade more, is a recipe to make things worse.
You’ve heard me talk about how on the farm we didn’t quit until the work was done. Learning to trade is the same.
It’s also true that when it’s time to quit, you quit. Great traders and farmers know when to do nothing.
Both Farming and Trading Require You to Work With the System
Farmers who fight the soil’s nature fail. Traders who fight the trend either blow up or churn and burn their account. Neither trading nor farming is about imposing your will.
My Take
The biggest difference between farming and trading is that on the farm, you get one shot per season. The market gives you almost too many shots. On the farm, we were patient because we had no choice. As a trader, it’s up to you to develop it if you don’t already have it.
Think of it as cultivating crops and see if that helps your mindset.
Watchlist
Yesterday was a slooooow day. But there were a few interesting stocks to watch.
In keeping with my farming analogy, Local Bounti Corporation (NYSE: LOCL) grows fresh greens and herbs.
That’s right, a farming stock.
Keep in mind that this is up because of a media blitz by a company that specializes in getting tickers in front of eyeballs. Yep, a legal promoter.
Source StocksToTrade LOCL 3-month, daily candle
As you can see on the chart above, yesterday LOCAL gapped up and had a huge volume spike.
It also held VWAP pretty well all day.
Source StocksToTrade LOCL 2-day 1-min candle, VWAP reclaim and hold
Trade this one conservatively. It could crack as soon as the media hype machine is over.
On My Radar
- CNBC interviewed President Trump on ‘Squawk Box’ yesterday.
- It’s official: FINRA announced the official date to scrap the PDT rule is June 4, 2026
- Spring turkey season started on April 18. My son got this beauty…
Source: my camera