Trading Tip #3 – If You Hear the Word “Hope”

By David Greenberg
David Greenberg
David Greenberg
DaviGreenberg has over 22 years of experience in private investments, commodities trading, and global markets. Throughout his career, Mr. Greenberg has appeared on numerous media outlets including CNN, Fox Business News, Bloomberg, and CNBC. He is a guest lecturer for the finance program at West Point Military Academy, the Whitman School of Management at Syracuse University, and Hofstra University. He also teaches at the Museum of American Finance.
June 25, 2013 Updated: April 24, 2016

Take if from me – THERE IS NO HOPE IN TRADING. I tell this to every one of my executive coaching clients. If you keep thinking, “I hope it goes up” or “I hope it goes down,” then get out NOW. It’s not working. Do yourself a favor. Get flat and take another look at the market.  

I know too many traders who are concerned about being flat and missing part of the trades. Don’t be. You can always get back in. No one catches every part of a trade. Being flat is the best and sometimes only way to think clearly, even if just for a moment.  

How many of you have been crushed in a down move by hoping the market would go back up or telling yourself the market has to bounce? One of the most essential lessons you’ll learn is that the market doesn’t have to do anything. No one is bigger or smarter than the market, and if you think you are, in time you will be carried out like so many traders before you.

Yes, there will be times that you get out of a trade and the moment you do, the market will then go your way. Don’t waste your time getting upset. I have a lecture named “Screwing Up and How to Deal with It” in which I explain this is not only for traders, but for everyone – because the simple and true fact is that everyone screws up.
 
When I traded on the floor, nearly 60% of my trades were bad trades. I could have sat on my butt and kicked the crap out of myself, but if I did, I would have missed many more good trades. So, if you get out and the market goes your way, don’t spend more then a second getting fired up. Just take a deep breath and step back in. You’ve learned an important lesson and now you can move on.
 
If you want to learn more about how to do this, stay tuned for “Trading Tip #4 – Being Able to Admit When Your Wrong,” coming soon.
 
More trading tips and rules are offered through my business coaching as well as lectures and speaking engagements.
 
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DaviGreenberg has over 22 years of experience in private investments, commodities trading, and global markets. Throughout his career, Mr. Greenberg has appeared on numerous media outlets including CNN, Fox Business News, Bloomberg, and CNBC. He is a guest lecturer for the finance program at West Point Military Academy, the Whitman School of Management at Syracuse University, and Hofstra University. He also teaches at the Museum of American Finance.