The Importance of Self Sufficiency as Traders

Self-sufficiency is key to any successful path – especially trading. Now more than ever, while the world has recently come off a total lock-down, being a self-sufficient trader puts you in complete financial control. Now, we aren’t saying you can control the market as a self-sufficient trader, but what you can control is when and where to put capital to work.

With the billions of dollars that were lost from a lack of demand during the 2020 stock market selloff, businesses were going bankrupt; which in turn, put people working for those businesses out of a job – it was quite a time.

There were people that have worked for a company for 10-20-30+ years, with stock options, a 401k; that found themselves out of a job with shares near worthless and an empty 401k to boot. The looming question they all had was, “now what?”

When you put yourself in a financial situation where you rely on another person to survive, you are not self-sufficient. If a business owner needs to cut costs for whatever reason, you better believe they’re going to do it; despite how long you’ve worked for that company.

Bottom line, if you work for someone else, you are not 100% in control of your financial situation. This global pandemic that we all just lived through was a wakeup call for those still stuck on this old way of living.

Self-sufficient traders weren’t financially affected by the global COVID (coronavirus) pandemic; it was business as usual – predominantly to the downside. Short-sellers got fed; nicely!

Of course, if you were a stubborn bull during those conditions, you more than likely went to zero. But if you were a smart and nimble trader, then you ended up adapting to the then current market conditions and were extracting cash on a daily basis to the downside. Shorting all pops for consecutive months had arguably been the best strategy during those conditions.

Adaptivity.

We say this all the time, emotional traders are very easy to spot. Panic selling in an uncertain market creates crystal-clear opportunities in which an astute trader can take advantage of.

Self-sufficiency in the trading game requires a strict process to follow. If you’re falling into the panic selling group or stubborn bull group, your process is broken; it’s as simple as that.

Active traders trade what the market gives us. We aren’t married to anything; ‘hit it and quit it’ – in all timeframes; especially in these current market conditions.

Before the market selloff got underway, we were bullish like many others. We were riding trends to the upside, taking multi-day/week moves. However, that changed; we clearly saw a shift in the market and needed to shift with it. If we chose to fight the market and continue on our bullish sentiment, we would have had our a$$ handed to us. Instead, we flowed with the Street.

Like everyone in the financial trading space, we were seeing so many talking about the “bottom”; but honestly, WHO CARES?!!!

Once the bottom is actually printed, during any selloff, there will be plenty of time to build into positions. Why spend time trying to time a bottom? That’s a fool’s game. Time is much better spent shorting the enormous opportunities the market is/was giving us to the downside.

The reason we bring up those talking about the bottom, is because way too many novice traders are just blindly following the media or other novice traders talking about how cheap securities were during those times. Yes, they were; however just because something is cheap, doesn’t make it a buy.

That being said, if you’re in the market and have done your OWN research and believe a particular security has reached its bottom, then by all means; BUY. But, don’t be a sheep and follow someone else’s idea as to what’s going to happen. Nobody has a crystal-ball.

Take the time to build your own trade ideas. Take the time to build your own process. Take the time to build your own playbook. Take the time to build your own trading style.

When you take the necessary time to become a self-sufficient trader, it doesn’t matter what’s going on around you; you’ll have processes in place to handle whatever is being thrown at you.

This is the end goal. Focus on what you can control and leave the rest where you found it.

Self Sufficiency is the ultimate freedom.

About The Street Trading

Consistently Profitable.

That's The Goal.

Start with a crystal-clear vision of where you’re headed, then effectively lay the foundation to reach that goal through a systematic process.

That's The Street Trading.

We provide a straight-forward, no-nonsense results-driven trading education, that cuts through the noise to teach new and existing traders on how the stock market truly operates.

Our attention is focused on building actionable knowledge about the markets from the ground up. We construct a foundation of the fundamentals behind consistently profitable trading that you can build a career on. Take the guess work out of trading and ultimately understand what moves the market to finally flow with the Street and Trade with Clarity.

Day Trading | Swing Trading | Position Trading - It all comes down to managing risk and market psychology.

If you’re interested in learning more about what we have to offer you as a trader, come check us out at https://www.thestreettrading.com/

We look forward to joining you on your trading journey!