Trader Quote #27Posted: February 14, 2013
Trader Quote #27
“We know that the random element in the market represents at least 40 to 60 percent activity. Therefore, it’s not logical to look at every tick or to think that every tick or every chart formation has meaning. They don’t. There are too many traders trying to look at the markets from too stringent an analytical viewpoint. Most of what happens in the markets is meaningless. Why try to interpret every little movement, every little reversal, every little tick? In trying to do too much, they’re actually paying too much attention to the market. You have to keep a distance from the market. Only then will you have the psychological resources to let your profits ride. You won’t be looking at every tick and interpreting it in a fearful way.” Jake Bernstein
==== This is a much longer quote than what I usually post but Jake has a very strong argument. I remember (now I laugh about it, back then I suffered it !) when I began trading I would pay attention to every tick, every reversal and any news and boy how stressful and unproductive that was!
I totally agree with Jake that doing more analysis on every tick does not translate to more trading results. Most of it is Noise Noise Noise and that can be very distracting and has a heavy impact in your psychological and execution aspect.
Look at the Forest first then the tree is a ancient saying but its a trap that many traders fall into (including myself). Understanding this ideology, with time, I have made my trading system & analysis much more practical and more long term oriented. This has given me more time and tranquility to do other important things in life and not be glued to my trading screen or mobile live quotes!
Stick to the bigger picture and do not focus on every tick (noise) and be careful not to become a MARKETHOLIC ! Good luck trading, always use stops , DImitri Feria ===