Control the Market, Control Your Trading

Submitted by Marco Palmero on 15 January, 2009 - 10:21


Control. We like to control things. We like to control things to a certain extent. To have some grasp of the environment around us. Most people like things to be predictable. For example: waking at the same time each day, having control of the choice of breakfast, a train or bus arriving at a certain time. Work which is predictable... controllable, where certain actions you take would produce certain results. Everyone operates within their own parameters. Whenever the unexpected arrives, it could be a pleasant or horrible surprise. The market can be predictable but it also can be an unpredictable beast. Only YOU can control your trading.

Most of us learn the hard way. The market is a beast which cannot be controlled. Can it be predicted? Perhaps. It depends if you are a believer of technical analysis. However, consider the market as a wild emotional beast, where some market movements can be highly logical and rational while other movements which would seem highly illogical and irrational.

So how can we control the market? How can we create a structure complete with boundaries and order in such an uncontrollable market? The only thing you can control is yourself. You create your own boundaries, your own structure and your own order. Each time you actively trade the market (be it stockmarket or forex market or any other financial market) you must be mindful and disciplined in defining your boundaries.

Only you are in command of your trading actions. You aren’t reactive to the market situation. You are proactive. You plan your trade well in advance of taking the next step. You have predefined the parameters you are looking for when searching for an opportunity. Your goal is to define your trading, entering high-probability trades: trades which will give you the largest reward the smallest amount of risk you are willing to trade. Only you are in control. Only you are accountable and responsible for all your actions.