In this week’s lesson, what I’d like to focus on is delayed gratification in stocks. Holding back your instant gratification urge when trading.
I find that a lot of traders and a lot of people that get into the market have a real problem when it comes to their inner game. And if you haven’t heard me talk about the inner game and the outer game of trading, just keep in mind that the inner game of trading has to do with things that are internal to you, your psychology, your mentality, your focus, your discipline.
Whereas the outer game of trading has to do with the physical aspects of trading, such as learning technical analysis, learning the tools of your trading platform and all those other things that are external to you.
A lot of traders, from what I see, have a major issue with instant gratification, or some people like to call this the shiny object syndrome. That’s the topic of discussion for this week.
News about the market
Before we get in detail into this topic and lesson, I do want to run by the S&P 500, the news, the reaction and what’s going on and what’s happening in the markets currently.
Looking at the S&P 500, I’ve talked about this dozens of times, but I do want to give you an update to make sure we’re all in sync of what’s going on and what’s happening in the market.
If you take a look at the support line and region that we drew across here, across this line, you can see that is a major critical support line, and then we have our resistance line right here, right around that 2135 level.
Things right now are a little bit unclear, as to what’s going to happen and when things are a little bit unclear, then things become a little more volatile.
This is in part due to interest rates, due to Janet Yellen, due to in part the economy of the world as well, so the Pies for the last year have been right around this region.
You can see if we take things back and bring it back to January of 2015, stocks have not broken higher past this 2135 level, and that’s going to be some major overhead resistance.
If we break that level, then we could see higher prices, and I would say don’t get in at 2135, you might want to wait until 2144 or 2143, just to give it a little bit of cushion, because you’re looking for multiple points to the upside.
For example, if we were to expand our chart a little bit, you’re probably looking for let’s say another 100 point run. So why chase or why try to get into that stock with just one dollar or one point additional move?
Because what’s going to happen is you’ll notice here what happened on Friday, November 13th, 2015, or November 16th of 2015 on Monday is that the stocks broke this 2040 price level and we went down about a couple of extra points. We went down about an extra 10, 13 points, and then the stocks bounced, similar to what happened yesterday, or the previous day on December 9th, 2015.
#tradingstocks #instantgratification #shinyobjects #tradingmarket #stockmarket #tradingproblems
Posted at: https://tradersfly.com/blog/ep-64-delayed-gratification-when-trading-stocks/
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Solid videos Sasha. You have a good mic which makes listening easy. What research/(trading?) platform are you using?
Omg sasha I'm new on this both things, you channel and trade, I have been reading books and practicing for 2 years and I haven't made my first trade yet, but this is amazing what you do and the way that you do it, thank you so much for you help. God bless you.
sasha thank you once again for your videos I started trading just only two months ago and I've been doing pretty well. I've watched alot of YouTube videos mainly to educate myself just because I learn better that way rather than reading… your my favorite channel though keep making the videos.. once I get enough money I'll make another investment to be your student .
sasha are you a familiar with an app that allows you to trade for free called robbinhood? do you recommend it for new traders?
Hi Sasha, great videos, thankyou.
How patient should we be though, really!??
I want to start trading full time so I will need to be doing some day trading to generate myself some weekly income…
Gretat points on instant gratification.
Some days ago i tried to make a video with technical analisys. I did want to show it to my expert trading friends so they can evalutate my TA. After 10 minutes i deleted the video. I was surprised of how much mess there is in my head and i didn't noticed before.
Sasha, thank you from the bottom of my heart.
I learned so much from you and made better trades 🙂
Patience is good in ETFs that can only moved by Central Banks. Stocks move on lies, fraud, analysts and so forth and you can get a 50% gap down and all the patience is wiped out.
WHEN IT LOOKS LIKE ITS GOING DOWN WATCH THE FED FAKEOUT. THEY ARE LOOKING TO MAKE THE MARKET DO THE OPPOSITE