So every time we act on impulse, we end up paying for our own impulsiveness. The buy point for any trade must be waiting for a pullback to a key level; most of the buy points at other times are either at the highs, or at highs during an upswing.
The biggest downside of impulsiveness is this: the moment there’s even a slight pullback, your profit turns into loss, because the profit you entered partway through can’t cover the impact caused by a single downturn. At that moment, your mindset becomes restless and uneasy.
If “waiting” for key levels along the way is a kind of anxiety, then getting stuck with a position is the price you pay for not waiting. If you’re willing to wait, then building up a cushion of accumulated profits is the reward—and your strongest support.
But we, and the people around us, are always too impulsive.
The biggest downside of impulsiveness is this: the moment there’s even a slight pullback, your profit turns into loss, because the profit you entered partway through can’t cover the impact caused by a single downturn. At that moment, your mindset becomes restless and uneasy.
If “waiting” for key levels along the way is a kind of anxiety, then getting stuck with a position is the price you pay for not waiting. If you’re willing to wait, then building up a cushion of accumulated profits is the reward—and your strongest support.
But we, and the people around us, are always too impulsive.