Flexibility for the trader to move with price action is the key to successful trading. You can be rigid with your rules and risk management but you must be flexible when it comes to how the future plays out in price action for any market or stock. It is not those that predict the future that make a lot of money in trading but those that react to what is actually happening that are able to profit from price action.
- The ability to change your mind and reverse your trade in the other direction when proven wrong is a powerful trait.
- The ability to admit you are wrong and take your stop loss can save your account.
- Put your ego aside and look at what is happening not what you believe should happen.
- Trade price action not your opinions.
- Always realize the markets are bigger than you are, they are always right.