There are times in life when we need to rely on other people and times when it is better to rely solely on ourselves.
Trading is a profession that favors independence, and if you don’t like being alone with your thoughts, trusting your “gut” and ignoring other people’s opinions and “noise,” you won’t succeed as a trader.
You must determine whether you are a dependent or independent trader by understanding the difference between the two. If you consider yourself an addicted trader and are losing money in the markets, it might be time to switch sides…
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Dependent Trader
For example, let’s say that you’ve been doing well in trading lately; you stick to your trading method and trading plan with discipline. You see a good form of trade setup in the market that aligns with your methodology and you are ready to open a trade.
However, just before you set it up, something makes you start browsing the Internet looking for more “clues” or “confirmations” for your trade; you’re looking for some sort of “certainty” that it will work. But what you find is not reassuring, in fact the opinions and opposing views on your trading that you have found online are causing you doubt and confusion. So, you have convinced yourself not to open a trade for these reasons.
You go back to your charts the next morning and sure enough, you find that the price action setup you were so confident about before you started listening to other opinions about it has taken off aggressively in your favor, but all that what you can do is watch from the sidelines, angry and disappointed in yourself for not trading it.
Does this sound familiar? I bet this or something similar has happened to you at least once, and maybe many times.
This is a prime example of why being a DEPENDENT trader is bad, in fact, terrible for your trading.
There is nothing worse than deviating from your trading plan based on someone else’s opinion and then seeing that if you had just stuck to the course, remained disciplined, and DIDN’T listen to them, you would have had a winning trade.
Independent Trader
Being an independent trader means that you trust yourself and understand that listening to other people and looking for “hints” outside of your trading method is just a waste of time.
There is a lot of talk in the trading world about “sticking to your method” and “discipline”. But few sources actually explain what it means or how to do it…
Being an independent trader means that you don’t deviate from your method or trading plan by listening to outsiders or seeking advice on your trades.
I would rather have the normal losing trades that are a natural statistical part of my trading edge than the losing trades that come from following the advice of a fellow trader or some news site.
No matter how skilled or smart you think someone is about trading, you cannot let their advice discourage you from making a trade that meets the criteria of your trading plan. Once you do this, you will deviate from your trading edge and start trading emotionally.
Disciplined, independent trading means that you simply execute your trading strategy (advantage) over and over again as it occurs in the market. You do not depend on the news or opinions of other traders because you know your trading strategy, trust it and have mastered it.
Your goal should be independent trading; you must have complete confidence in yourself and be confident in your trading strategy and your own ability to find, place and manage your trades. Everything else should be considered as external noise that distracts and damages your trading activity.
You cannot rely on anyone but yourself when it comes to trading; no one cares about your money more than yourself. I take pride in teaching people simple price action strategies that give them the foundation they need to become self-sufficient, independent, and successful traders.
Feel free to email me with any questions or concerns you may have and don’t forget to leave a comment below.
