Don’t Listen to Others Opinions or Trading Tips: Tale of Two Traders

October 10th, 2012

There are few true facts about humans. Most are followers - many are not leaders. We all seek instant gratification - wanting to skip the hard work in between. Even if you know this, its still hard to go against it when a tip is presented to you to make your life easier.

Let me tell you the story of two traders. One of my friends was staying at my house for a bit. We were still in the early days of trading, and he setup his computer setup in the other room. It almost felt like were room mates even though we were out of college. We just wanted to interact during market hours, play concepts off of one another. He had his screens and I had mine.

We started going about our day and one stock in particular which we both owned - I was long and he was short. (I can not remember the stock at this point in time). He was looking at it from the short side and I was looking at it from the long side.

The day goes by and we had various interactions about the direction of the stock. I started to doubt myself and ended up selling my shares.

So what did the stock end up doing? It went down for the day and then popped back up higher than ever over the next week.

Whats the lesson?

After me and my friend talked, he was trading on day-to-day basis. He wasn't looking to trade for more than 2 days. As for me I was looking at a longer term horizon such as a week, maybe more. Lesson learned that you should always stick to your own rules and your own trading strategies. We were both right but our time horizon was different. Doubt caused me to make changes in my plan or strategy. Its a psychology game, so stick to your rules and your strategies.

Author: Sasha Evdakov

Sasha is the creator of the Tradersfly and Rise2Learn. He focuses on high-level education speaking at events, writing books, and publishing video courses on business development, internet marketing, finance, and personal growth.

I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

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