Why Trading Is A Lot Like Fishing
Ever have that trading day where:
- You get up early
- You diligently analyze the markets: sentiment and fundamentals
- You identify an extremely promising currency pair to trade based on sentiment and/or fundamentals
- You identify an ideal entry point with perfect confluence between price and other areas.
- You place your order to enter if price gets back to that area. You set your stop loss order at a pre-defined area in case price moves against you. You set your profit target order to take profits when price reaches your pre-defined target area.
- You are locked and loaded and ready to go!
Price never makes it to your entry price all day and you cancel the order.
All that work and nothing to show for it! Now, consider someone running a shrimp boat for a living...
- They get up early in the morning before the sun has come up. They gas up their boat, prepare their nets, pilot their boat out to their usual, productive area, drop their nets and begin to fish.
- They pull up their net after the first drag...No shrimp!
- They empty all the junk out of their nets and throw them back into the water.
Time for another pass! They get...NOTHING! This could go on for hours and they might return home empty-handed.
All that work, expense (gas and wear and tear on the boat), blood, sweat and tears and nothing to show for it!
Do they refuse to go out the next day! Heck no! It is THEIR LIVING! They have done this for YEARS! They EXPECT days like this!
As traders, we must have the same attitude....We prepare, we execute, and sometimes, we have nothing to show for it and even a loss!
The next day, we get up, execute our plan and do it all over again!
We do not have control over the RESULTS but we DO have control over the PROCESS! If we have a sound trading process, we know that, statistically, we will be a profitable trader!