Prioritizing Your Market Opinions Over Others
“One of the biggest reasons why I struggled with trading for so long was because I valued other people’s opinions over my own. When you respect others so greatly, it can be challenging to trust yourself when there’s conflict. Believe in yourself. You got this!”
The above is a tweet from Michael Lamothe, and it seems to have resonated with many people. I want to start by saying this was never really a problem for me, maybe because I like competition, especially from someone better than me.
OR I’m full of myself to think I can go against someone I deeply respect in a certain industry right? Either way, I’ve never really had a problem having confidence in my gut.
I want to propose a couple of strategies to help you block out opinions if you are having trouble doing it at the moment. 2 Ways to Get blinders and mind your own stuff!
Social Media OFF
Switch off your social media bro! There are too many people on there with different opinions on where price will go, and if you’ve watched The Wolf of Wall Street movie, you know that NOBODY knows where price is going, EVER!
If you have to be on the socials for other stuff, and you can’t avoid seeing trading-related posts. DON’T TAKE IT SERIOUSLY.
Most often, you will be misled and think that trader wins every trade or even most trades. That does not concern you. You don’t know what that person is doing behind the scenes to pull off whatever they’re doing. It could even be completely FAKE.
Websites with forums and “analysts” who always believe they are correct are the worst. You don’t take advice from people who are in the same position as you on how to exit.
Trust me, most of these analysts are just that. They don’t trade, they don’t put any money at risk, and INFACT, they get PAID to analyze. Do you see the problem? They’ll analyze the hell out of anything and put it out there just to get a check, and you end up taking it seriously.
Those of you who use TradingView, STAY AWAY FROM THE “Ideas” tab or whatever it’s called where people post their analysis. Most people there ALSO don’t know what they’re talking about.
Don’t compare returns
There’s always going to be someone out there “making more money” with their strategy. I hope you could picture the air quotes. People out here will play with people’s feelings. “Turn $1,000 into $10,000 in a week” Yeah! Once!
Don’t let that make you think your strategy, which only brings you 5% a month, is a dud, and you should abandon it. That’s an excellent place to start.
But flipping money like that is not sustainable. It’s not because of their strategy, it’s a mixture of RISK and LUCK!
A major help with minding your trading probably has to do with perspective. Other traders are not better than you. If they are, they won’t show you everything about how to be as good as they are, not a chance!
Most of them are actually worse than you. Facts. They’ve just been successful at convincing people otherwise.
What kind of returns are good enough? In all honesty, anywhere from 3%-20% per month is awesome! Don’t aim for that 20% a year nonsense people talk about.
The stock market beats those returns over time. Trading takes effort, and that effort should show. When you eventually start making small returns, don’t think your strategy is not good enough because you want 10% a month.
The difference between your strategy making 3% and 10% per month (on average, don’t expect exactly 10% every month. Could be more some months, could be less in others) is usually down to how you MANAGE RISK and TRADE MANAGEMENT.
Never switch your strategy in hopes of finding a magical one. Keep working on smarter ways to manage risk and manage your trades.
Don’t bet the farm.
Don’t lose your shirt.
Cut the L.
Keep the W.
Market Opinions FAQ
Well first back-test your system and see if it makes money in theory because unless it does, you will always have a confidence problem.
At first yes, learn from them and once nothing they say is new to you, it’s time go your own way.