This is a Guest Post by: Colibri Trader @priceinaction. This article is used here with permission and originally appeared here on ColibriTrader.com.
5 Things Depeche Mode Can Teach You About Successful Online Trading
by: Colibri Trader
I was checking my e-mail on Friday and received a request from one of my followers. In the e-mail he was challenging me to write a piece of article that relates one of the greatest electronic bands of all time to trading. Rather than writing another article on Technical or Fundamental Analysis, I have decided to take up the gauntlet. Here is what Depeche Mode- one of the most successful bands ever can teach you about successful trading.
People are People
“You’re punching and you’re kicking and you’re shouting at me /
I’m relying on your common decency /
So far it hasn’t surfaced, but I’m sure it exists /
It just takes a while to travel from your head to your fist.”
Losing trades suck! Every time a trader is in a losing trade he/she goes from feelings of anger to self-pity. This is probably the feeling that traders abhor most. A loosing trade makes you feel like you want to “punch and kick” and there is not much you can do about it.
“The grabbing hands grab all they can, all for themselves /
After all, it’s a competitive world /
Everything counts in large amounts.”
The greedy trader. A lot of traders are willing to accept that greed has cost them more than anything else. Indeed, the desire to make more and then even more is very compelling. The concept of “grabbing hands” in trading is not strange at all. In the end of the day, maybe greed is not good for you.
If you want control without any pain/
How long will you suffer?/
How long will you wait?
Going against the market. One of the biggest obstacles in trading is human nature. How many times have you been struck in bewilderment only to realize that Mr. Market is always right? Trying to catch a falling knife is a well-known misdemeanour, which has never led to any good. So, how long are you ready to suffer? How long will you wait before being ready to “swallow your pride” and let this trade go…
It’s No Good
Do we have to wait till our worlds collide/
Open up your eyes/
You can’t turn back the tide/ […]
Subjectivity. Subjectivity is one of the major reasons for trading strategies failing and traders losing money. What can be more difficult than admitting to yourself that your ideas are wrong. No matter how convinced you are, open up your eyes and look at the market direction. You cannot turn back the tide, so you’d better take another shot or call it a day.
Policy of Truth
Now you’re not satisfied/
With what you’re being put through/
It’s just time to pay the price/
For not listening to advice
Looking for the Holy Grail of Trading. A very common misconception is the idea of the holy grail in trading. It is one of the most sacred beliefs of the beginner trader. In trading, listening to others could lead to costly mistakes. Trying to trade on tips has never led Jesse Livermore to any good decisions. Following your broker’s advice… maybe not today. Now you are not satisfied? Well, look elsewhere, because what you are being put through is just the price to pay for listening to another man’s advice!
Check out one of my other popular articles on 3 Ideas That Boosted My Trading Career
For more articles by Colibri Trader check him out here on ColibriTrader.com and follow him on twitter @Priceinaction.