Do you have a habit of trading?Posted: March 8, 2014
I really hope not and let me tell you why..
A habit is a behavior done with little or no conscious thought.
Do you want to trade with little or no conscious thought, do you really want to put your money under these circumstances?
I am sure you don’t. That is why trading should not evolve into a habit.
Trading should be a “boring” systematic approach through chart patterns.
No pattern = No trade (at least for technical analysts)
However your brokerage (online/offline) wants you to create that trading habit in you, even Bloomberg, Cnbc, and most media outlets wants you to have the habit of trading. Why? Because fostering trading habits increases customer lifetime value.
Do Not comply! Refuse
At a previous post I mentioned triggers that run after you and signal & push you to trade for whatever reason. You can review them here, be aware of them and make note whenever they trigger.
You do not have to trade every day or every week or even every month. You should only trade when there is a valid breakout of a pattern even if it means you trade once or twice a month or even a year!