How to Avoid Excuses When It Comes to ETF Investing
April 12th at 1:00am by Tom Lydon
There are certain things you’ll never hear a stock or exchange traded fund (ETF) trader say when things are going well.
Brett Steenbarger for TraderFeed has five sayings that traders mutter, but only when they’re losing money.
- “Wait till the bubble bursts.” What it means: I am not long and the market is going higher. Reality check: trade what the markets are doing and don’t fight the trends.
- “It’s a slow market.” What it means: My timing is bad and I am not making money.
- “This market is manipulated.” What it means: It’s not my fault I am not making money.
- “I was early.” What it means: My timing is off and my trade went bad.
- “That was the PPT (government Plunge Protection Theme).” I am short and the market is raging higher.
How can you avoid making these statements?
If you have a strategy, such as a trend following strategy, which gives you an entry and an exit strategy, you might be able to put a lid on excuses and complaints, because you will have removed your emotions and replaced it with a firm discipline.
