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Trade Lesson: Act Like A Lion When Trading

Many times day traders are very anxious and want to be involved in a trade all day. The market only gives a few good opportunities a day and that is when traders should react and take what the market is offering. During the InTheMoneyStock.com Chat Room I see many traders wanting and pulling the trigger when the market is not giving the correct setup or signal to do so. 

Trading is very similar to the lion in the jungle. The lion stalks his pray in the brush and he does not pick on the strongest animal in the pack. He looks for the one that is wounded or the animal that is not paying attention. Therefore, as a trader we must do the same thing. This afternoon during the lunch hour the trading was very slow as the volume was extremely light. However, our traders were alerted to the 110.50 support level for a bounce trade on the SPY. At 3:15 pm EST the SPY traded down into that 110.50 level and our traders bought the SPY. This was a very good support area on the chart as it was the first tag of the 200 moving average. Often the first move into the 200 moving average is a buy after an extension in price.

Patience is what pays. Patience is what gives the lion a full belly when he has not eaten all day. Take a page from nature and only take the best chart setups at the most opportune times. As a trader we cannot impose our will on the market we can only take what the market gives us.