Don't trade on another person's conviction

Author: Giles Coghlan | Category: News

tricky one

tricky one
This is hard because when you are learning trading you don't yet have a developed sense of conviction. It just takes time to develop. So, at first, it can be helpful to follow some traders whose analysis you respect to help you. When I was learning and I was taking a trade I would always think carefully if a certain trader had an opposite conviction to me. I would think, 'why?'. This helped me to be rigorous in my conviction levels. 

However, the bottom line in trading is that you are not part of a team. It is closer to tennis singles than football. You are alone on the court making decisions. So, always trade on your own conviction. Then when the trade goes against you 50 points you have no hesitation holding. You have your conviction. Obviously if the trade goes against you for a specific reason you may want to change. The point is you know why you are trading. 

So, don't trade on another person's conviction. Your losses and your wins are our own responsibility. 
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