Think Like a Whale - Five Secrets to Improve your Trading Strategy #1
Welcome back dear traders and investors!
We meet again in an incredible article in which I will be teaching five secrets to think like a real whale. He told them that I have been extremely motivated with this issue, so I have decided to continue delving into economic and visionary matters. Who as a trader or investor has not wondered about the way of thinking of some whale? for the fortune of all, do not wait any longer, in this article I will detail it specifically.
Original image created in photoshop CS5
1. Focus on the present:
A large number of traders continue to lose without knowing how to determine what is really happening, perhaps the answer is right in front of their noses but they are unable to notice it. Among the most frequent mistakes in the matter of the economy, there is the dilemma of thinking about the future, but not with healthy purposes, but with irregular intentions to use capital that we do not have or think about what we are going to have after such an investment. Believe it or not, deviating from the present while dreaming about the future will not materially help our assets, on the contrary, it will be a constant distraction and torment that will haunt us for a long time. The key to the success of the trader thinking like a whale is involved in concentrating on the present, by this I mean reality, investment and its monetary projection, without deviating from what corresponds or interests us.
Remember very much the phrase that to run, we must walk first, then, disengage the dogmatic and impractical thinking of wanting to invest so much capital if we still do not have it in our wallet. I should add that this advice is not just for trading, it is also advice for life and opportunities. If you are going to think about the future, do it with your feet on the ground.
I often hear "when I have this money, when I have this capital" as if all your problems were to be solved in the future. Don't be one of those people, don't be more of the bunch.
2. Make safe investments:
"Whales do not take risks, they seek safety" this is a phrase that my trading professor at the Caracas school constantly repeated to me, in addition, he added that "risks are for newbies." This does not mean that trading will no longer have a risk margin, but rather that we collectively reflect and think before investing, taking into account market variability, risk factor, margin of error and other factors.
The risks are for newbies and there is no doubt about it, for something the first steps in different directions can be somewhat run over before we adapt. Making safe investments symbolizes starting to stop pursuing such large profits with a lot of problems and risks, and starting the search in the best sense of medium profits with little risk, this means that instead of earning 20 Pips with a 30% margin of error We will try to win 10 Pips with a margin of 15% error against 85% in favor, that is the idea, but we are the ones who put it into practice.
3. Earn less, lose less:
Investing less amount of money in trading will not only configure our way of life, but will also improve our investment scheme. I know that various trading schools recommend making investments with 1% or even 5% of the capital, but we well know that this "law" does not apply to the letter, traders really invest much more than that, and it is something that is not discussed regularly, the same happens with whales. The question is that we can well invest 80% of our capital, but of that 80% we will only put 20% to work, that is, saving the other 60% as a secondary investment or plan B.
Investing less means losing less amount of capital and that is what should be sought. What is the use of investing 80% of the capital in an invariable investment destined to fail? We can lose everything without realizing it, therefore, to avoid such inconveniences, it is advisable to make an investment plan (something that we will talk about later) and with that plan determine the risk factor and the capital projection.
4. Don't use trading to make fun of the economy:
Whales do not invest to circumvent the economy, or circumvent work, or circumvent society, they invest to multiply capital, but they still continue working, they still continue to be part of society and they still continue to make life in the economy. Do not imagine or promote alter egos grown of fame and perfect histories, be like the other groups of investors, do it quietly and do not see it as an escape from normality, or as an extravagant ability with which you can show off.
"I don't work, I invest or trade"
"I am not more of the lot, I am more than the others"
Eliminate such dogmas, because they will lead you to failure without a doubt.
5. Create a strategy associated with your investment style and capital power:
Each person has or possesses a completely unique personality, it also happens in investments or trading, of course, it is recommended to have cold, stoic, serene and peaceful skills, let's say that being impulsive is not something we should encourage. However, returning to the subject, our main concern should be to determine a "strategy associated with your investment style and capital power" since it will be the same capable of leading us to economic success. Every trader must have a strategy based on their analysis and data collection (technical or fundamental), as well as being able to execute investments without fear of failure, with an innate certainty that is unique to each one.
For this reason, there are those who invest in scalping, daytrading, position trading, future trading and margin, everyone is free, and their methodology will be anchored to their personality, logic, psychology and particular taste. If you do not have your own strategy, it is likely that the comments of others greatly influence your investments, be very careful, because this is not the idea, before investing we must be sure "first with ourselves and then with the investment"
Again, if you do not have a financial investment strategy, go ahead and create one or share it with others through a comment on this post. In the same way, I invite you to write to me in disagreement and talk together as trading colleagues to -if you do not have a plan- develop it together.
Thanks so much for reading
Recent articles:
How do whales invest in the market? - Economic Review
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