Market hitting new Highs, but your PnL isn't?
Here are some lessons Mark Minervini, Dan Zanger and Jessie Livermore teaches us about mindset.
As the market continues to make new highs and stocks like NVDA and SMCI rip, it can be really frustrating to watch if you are not performing well right now. If your PnL is flat or down, maintaining the right mindset becomes paramount. Let's dig into the insights offered by seasoned traders like Mark Minervini, Jessie Livermore, and Dan Zanger to guide and inspire those who are frustrated and feel like they are missing out.
Mark Minervini emphasizes the importance of patience and discipline. He suggests, "Don't get frustrated by the pace of your progress. Remember, trading success is a journey, not a destination." Minervini's words echo the sentiment that trading is not a sprint but a marathon. It requires consistent effort and a steadfast mindset to endure the highs and lows.
Drawing inspiration from the legendary trader Jessie Livermore, who once said, "The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer," reminds us of the necessity of intelligence and emotional resilience in trading. Livermore's words caution against impulsive actions driven by greed or fear, urging traders to approach the market with a strategic mindset.
Dan Zanger, known for his remarkable success in momentum trading, advocates for embracing volatility as an opportunity rather than a threat. He advises, "To be a successful trader, you have to be able to admit mistakes. You have to be willing to cut your losses. The most important thing is to keep the losses small." Zanger's wisdom underscores the significance of risk management and adaptability in navigating the ever-changing landscape of the stock market.
For newer traders experiencing frustration amid a soaring market, it's crucial to remember that success in trading is not solely determined by short-term gains. Instead, it's about cultivating the right mindset, learning from setbacks, and staying focused on long-term objectives. As Livermore put it, "The stock market is never obvious. It is designed to fool most of the people, most of the time."
The journey of stock trading demands more than just technical knowhow; it requires mental fortitude, resilience, and a willingness to learn from both successes and failures.
I will leave you with this. Take this time to deploy your discipline, trade only the best setups and ignore everyone else (including my tweets LOL)