{"id":18291,"date":"2021-03-26T07:30:22","date_gmt":"2021-03-26T11:30:22","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=18291"},"modified":"2021-03-26T07:30:22","modified_gmt":"2021-03-26T11:30:22","slug":"the-secret-to-a-long-trading-career","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-secret-to-a-long-trading-career\/","title":{"rendered":"The Secret to a Long Trading Career"},"content":{"rendered":"<p>Imagine you&rsquo;re a contestant on the game show&nbsp;&ldquo;Let&rsquo;s Make a Deal.&rdquo;<\/p>\n<p>Monty Hall pulls you out of the audience. He waves $2,000 in your face and says, &ldquo;This is your money. You can take it and keep it right now, or you can trade it for what&rsquo;s behind the curtain.&rdquo;<\/p>\n<p>Of course, you know from a lifetime of watching daytime television that there&rsquo;s a 50% chance that what&rsquo;s behind the curtain is an all-expenses-paid trip to Mazatl&aacute;n &ndash; valued at $5,000 &ndash; and a 50% chance that it&rsquo;s something virtually worthless, like a farm animal.<\/p>\n<p>What do you do?<\/p>\n<p>If it&rsquo;s me&hellip; I&rsquo;m taking the cash.<\/p>\n<p>I&rsquo;m thinking, &ldquo;I came here with nothing. There&rsquo;s a 100% chance I&rsquo;ll leave here better off if I take the money. There&rsquo;s only a 50% chance I&rsquo;ll leave here happy if I take what&rsquo;s behind the curtain. Either way&hellip; My life isn&rsquo;t going to change dramatically. So, I&rsquo;ll take the $2,000 and be happy no matter what.&rdquo;<\/p>\n<p>Here&rsquo;s another line of thought&hellip;<\/p>\n<p>&ldquo;I came here with nothing. The worst case is I&rsquo;ll leave here with nothing. But there&rsquo;s a 50% chance to increase the return on my prize by 150%. The odds justify that trade. So, I&rsquo;ll pick what&rsquo;s behind the curtain.&rdquo;<\/p>\n<p>Here&rsquo;s the thing&hellip;&nbsp;There&rsquo;s nothing wrong with either decision. All that matters is how you view the consequences of the trade. Let me explain&hellip;<\/p>\n<p>I&rsquo;m going to be happy if I get a $2,000 windfall profit. I might be slightly more ecstatic if I win a trip valued at $5,000. But I&rsquo;ll feel like an idiot if I give up the $2,000 and go home with a goat.<\/p>\n<p>So, I&rsquo;ll pass on &ldquo;ecstatic.&rdquo; I&rsquo;ll take &ldquo;happy.&rdquo;<\/p>\n<p>Not everyone thinks that way &ndash; which is why we love watching game shows.<\/p>\n<p>Let&rsquo;s apply this thought process to the stock market&hellip;<\/p>\n<table bgcolor=\"#eeeeee\" border=\"0\" cellpadding=\"10\" cellspacing=\"0\" width=\"100%\" style=\"border: 1px solid #D7D7D7; margin-bottom:20px;\">\n<tbody>\n<tr>\n<td style=\"padding-left: 15px;padding-right: 15px; padding-top: 10px; font-family: Arial,sans-serif;font-size:17px; line-height:24px;\">\n<p align=\"center\" style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; margin-bottom: 20px; font-size: 18px;\"><strong>Free Trading Resources<\/strong><\/p>\n<p>Have you checked out Jeff&#8217;s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just <a href=\"https:\/\/www.jeffclarktrader.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Every time I close a trade, in the back of my mind, a little voice asks, &ldquo;What happens if it moves even higher?&rdquo;<\/p>\n<p>This is the equivalent of Monty Hall asking if I want to keep the $2,000 or trade it for what&rsquo;s behind the curtain.<\/p>\n<p>I know for sure that I&rsquo;m happy if I close the trade right now. I don&rsquo;t know if I&rsquo;ll be happier or feel like an idiot later.<\/p>\n<p>So, I almost always chose to err on the side of happiness.<\/p>\n<p>Now&hellip; If this is your only time on a game show&hellip; If it&rsquo;s your only chance to make a trade in front of Monty Hall, then it&rsquo;s understandable if you choose what&rsquo;s behind the curtain.<\/p>\n<p>After all, it&rsquo;s your only shot to maximize your gains.<\/p>\n<p>I get it.<\/p>\n<p>But the stock market isn&rsquo;t a game show. We have trading opportunities almost every single day. The secret to longevity as a trader is to consistently take the money when it&rsquo;s flashed in front of you.<\/p>\n<p>In today&rsquo;s environment, it might be better to settle on &ldquo;happy&rdquo; over &ldquo;ecstatic.&rdquo;<\/p>\n<p>You might feel a tinge of disappointment if a trip to Mazatl&aacute;n is behind the curtain. But you&rsquo;re still heading home with more money than you had before.<\/p>\n<p>Be happy. At least you&rsquo;re not going home with a goat.<\/p>\n<p>Best regards and good trading,<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\" width=\"200\" style=\"max-width:200px; width:100%;\" \/><\/p>\n<p>Jeff Clark<\/p>\n<h2 align=\"center\"><strong>Reader Mailbag<\/strong><\/h2>\n<p>Do you find yourself often looking back after exiting winning trades, or are you happy to take your profits and move on?<\/p>\n<p>Let us know your thoughts &ndash; and any questions you may have &ndash; at <a href=\"mailto:feedback@jeffclarktrader.com\">feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I almost always choose this side&#8230;<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-18291","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=18291"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18291\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=18291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=18291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=18291"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=18291"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=18291"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=18291"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=18291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}