Steph and I were walking back home last week and as we were crossing a busy intersection there was a woman in a Chevy Blazer starting to turn into us. We saw the whole thing and were extremely alert because we noticed that she wasn’t paying attention to us. She was trying to squeeze in her turn between some fast oncoming traffic. We started to do a dance with her and her truck in the middle of the road not knowing if she was going to let us go or if she was going to possibly run us over. Finally she did the right thing and stopped to let us cross the street. Most drivers get mad at the pedestrian for slowing the pace of the turn and most pedestrians shout obscenities and hand gestures at the driver, but in this case it was different. The woman had her window down and leaned out to apologize immediately and the way she did it caused Steph and I to forgive instantly. She clearly showed us by her facial expression that she was disappointed with her impatience, apologized and said, “Sorry, I’m really having a bad day.” The weight and stress of our alert calmed and she slowed herself down and calmed herself. The little incident helped us both to go about our day as planned.

I mention this to help deliver a trading tip because sometimes we are in a trade that makes us feel the same emotion like the dance we did in the middle of the road with the truck. You start out following your plan and get involved in the trade when your strategy told you to (like crossing the street when the walk-sign is lit). For instance we like to buy or get long in the market when price action just starts in an uptrend (higher highs and higher lows) or sell and get short when price action starts in a downtrend (lower highs and lower lows) but sometimes something happens that shakes your thought as the market starts to turn. Price action doesn’t go fully against your risk parameters but some red flags start waving putting you on high alert just like Steph and I were in the middle of the street with the truck. If price action begins to flip in trend against our favored direction and begins to twist our stomach in knots, we call this movement “The Storm”. The idea is that if price action hasn’t breached our stop loss area that we can weather a storm against us. If the skies clear like they did for Steph and I when the lady let us go, we proceed with our objective. On the flip side if the dance in the street puts you on alert and you have weathered the first dance and the lady in the truck keeps running at you, it’s time to jump ship and possibly face a few bruises rather than just trying to stick in there and take the full blow. We have posted a few slides from our e-book at: RDS Trader to illustrate the point a bit further.

Whatever you decide to try; you can’t win, if you don’t play!! Prosperity is at your fingertips! All you have to do is grab it!!