Being selective is important. This is the part I find most traders have a problem with. They tend to be not selective rather than being selective. Because there’s a reason for that. Because being selective means you are doing a lot of work for nothing.
Do you understand my point?
So, that is a typical flock bias, it’s that most people, they think that I’ve done a lot of work. I’ve looked at a lot of charts. I must at least find one trade to trade. Even all the charts might not show you any good trading setups right now. But you felt that you have spent so much time. You have spent so much time and you need to make your time worth it so you just
Force trade yourself.
Yeah, you force trade yourself or you lower your expectations of what is the kind of trading setups, you wanna focus on. And you become very casual in terms of your trading decisions. So that is one of the typical errors that traders make by being not particular.
And when I say this, it doesn’t mean that it’s easy for me also. It is difficult for anybody to spend a lot of time analyzing and then not finding good setups and still be patient and just sit there. So it’s a constant struggle which you will become better and better over time if you are aware of it and you keep reminding yourself, okay, there’s no good trading setups. There’s no point to force a trade. Let’s just chill and let’s stay out and observe some more.
Because remember no matter how much capital you have, you can’t possibly diversify until you have plenty of open positions at the same time. If you can only have five to 10 open positions at the same time, think about it. Do you have to be very, very selective?
Yeah, I have to.
Yeah, you have to right, because there’s always, remember this, there’s always opportunity costs.
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