Gazelles are a an antelope species, and as such, are nimble creatures. They are also susceptible to being easily spooked, and may end up running with the wrong crowd. These traits alone would make them horrible traders, but there are things that a skittish trader can learn from this fleet-footed creatures.
- Being nervous is not a good trading trait. If you are easily spooked, trading is probably not for you.
- Following the mindless herd is a recipe for disaster. Instead, follow your trading plan, no matter what.
- Assume that you are not the apex predator. There is always going to be someone more experienced than you on the other side of the trade.
- Be agile. Know when you should cut your losses and get out.
- Being agile doesn’t mean making knee-jerk decisions. Follow the signals. Period.
- Avoid the tall grass. Don’t get in so far over your head with large position sizing and loose stop losses that you can’t avoid the inevitable.
- Know your area well. Make sure that you fully understand the market you choose to trade.
- Expect the unexpected. There are always unknowns. Make sure you are following the 1% loss of capital rule, and you don’t have to worry about disasters.
There are many traders who are too afraid to dip their toes in the water, and others who may be too brave for their own good. Find a comfortable place psychologically, where you are well educated, but not consumed by your own ego. Only then, will you begin to trade in a good place, and realize your full potential as a trader.