Pre-Paying
Before online retailing we went to a brick-and-mortar store. We saw, touched, used and/or fitted the merchandise. Then we decided and paid. Very safe, the sequence of paying afterward.
I recall the first time I wanted to buy shoes online. It was a hard decision. I wanted to try them on, feel the fit, and not have the hassle of shipping them back for a refund. Eventually I gave in and judging by the growth of online retailing, most everyone did too.
If you’re comfortable now with buying from an online retailer, you are one step closer to being an unemotional trader.
Think about trading this way: The price you’re paying to enter a trade is your pre-determined stop loss. That’s the most the trade will cost you. The “merchandise” you’re expecting is the profit target(s). Pay a fixed amount in advance, receive an unknown amount back.
Imagine you’re writing a check to Mr. Market when you enter your trades. If you have this mindset that the "check" was cashed and out of your account, you killed the negative emotion of loss if it occurs. Now the outcome can only be a breakeven result or a range of profits that you’ll be more or less happy about. Try it.
Our trading teams focus on multiple strategies for day trading futures and high-probability candidates for swing trading options. You can learn either or both risk-free. Join us.
To your trading success,
Mike Siewruk
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