Flexibility for the trader to move with price action is the key to successful trading. Stubbornness is very expensive in the markets when you are on the wrong side of a trend. You can be rigid with your rules and risk management but you must be flexible when it comes to how the future plays out in price action for any market or stock. It is not those that predict the future that make a lot of money in trading but those that react to what is actually happening that are able to profit from price action. The ability to enter when your signal and then ride a trend as it emerges is the key to profitability.
- The ability to change your mind and reverse your trade in the other direction when proven wrong is a powerful trait. This enables you to quickly get on the right side of a trend and not stay on the wrong side.
- The ability to admit you are wrong and take your stop loss can save your account. The faster you admit you are wrong the smaller your losses will be.
- Put your ego aside and look at what is happening not what you believe should happen. Signals must replace opinions as your entry and exit signals.
- Trade the present price action and not predictions by yourself or anyone else.
- Always realize the markets are bigger than you are, they are always right. Market trends can be a steam roller and your job is to ride that steam roller not be run over by it.
Be flexible and willing to go with the flow of the markets whatever direction they take you in.