In trading focus is crucial. You have to know who you are as a trader and exactly what your method and trading plan is, and you must follow it. In trading discipline makes money, focus makes money, monster stocks make money, while risk management allows you to keep the money that you have made. You could say you must be picky to be a good trader.
Here are the areas to be picky about:
- A good trader is picky about the methodology they decide to trade, they study diligently to see what works before they begin trading.
- Be very picky about the stocks you trade, only trade the very best monster stocks long and only short the absolute biggest junk stocks.
- Being picky about your entry point is crucial, stick with your plan, buy only when the odds are in your favor for winning.
- You can not just trade any amount of stock, you have to be picky about the quantity of shares you trade and base it on your risk management guidelines.
- Be very picky about who you follow on twitter, look for a teacher not a stock picker, beware of big egos.
- Only study the very best traders of all time not the mediocre ones. You want proven track records not just theory.
- Listen to real traders not talking heads on CNBC.
- Read only the very best trading books available that come highly recommended.
- If you trade options only trade the ones with the most liquidity so you do not lose money between the bid/ask spread.
- Continuously filter all your sources of trading information, ONLY keep that which enables you to make money in the markets.
In trading the picky 10% of traders win the 90% of traders that do what is easy lose.