Recently I had a discussion with my friend about trading styles.
He is a hard-core Nifty & BankNifty Options seller.
He explained his trading style to me.
He used to sell the last month i.e December contracts & collect the premiums and where ever market moves he used to do the adjustments every week.
He calls this trading style as “FIRE FIGHTING”
Here, I’m not going to argue that this is not a good trading style.
The name “FIRE FIGHTHING” got stuck inside my mind.
I’m thinking deeply about this style of trading.
As most of us do, I googled it. Below is the result.
Fire Fighting is the practice of dealing with problems.
Here is my opinion & Alternate to it.
I’m not a fan of Fire Fighting Process.
· Do I have a fear of dealing with problems?
I have an alternate way to approach this.
What is the way?
Doing “Effortless Action” with more sincere way.
I believe anything can achieve through Sincere Action.
Imagine you want to catch your cat and you are chasing it. Most of the time you failed to catch.
After sometime, You concentrate to your other work, you may noticed your cat will caress your feet :)
This is something I believe in, Don’t Chase, Attract. In western countries, They call it as Law of Attraction (LoA), In Taoism, they call it as Wu-Wei.
I call it as Effortless or Sincere Action!
How I am applying in my trading style?
- As I mentioned above. I’m not a fan of Chasing nor Fire Fighting.
- I always want to do effortless actions. (You can call me as Lazy person 😃)
- In my early days of trading, I always want a trade whenever I opened my chart and I always chased the money. But nothing worked out.
Whenever I opened my chart.
- I don’t look to trade immediately .
- I will take a few mins to hours to observe the price movement & think what this price movement mean to other traders. Who is facing pain? Who is Hope? Etc,
- Once I find necessary information, I will wait for price to come to my place (Trading Zone)
- I don’t chase the price because of I have analyzed the chart and found the direction.
Now, 3 scenarios will happen.
1. Price will not come to my zone, it will move further away – This time, I don’t chase. I will not do anything. I sit simply – Effortless Action.
2. Price will come to my zone, It will fill my orders and go in my favorable direction – This time, I will practice more patience and expect price to reach my targets. I sit simply – Effortless Action.
3. Price will come to my zone, It will not form any setup and goes opposite direction to my analysis. This time, I ignore the trade. I sit simply – Effortless Action.
In any given point of time. I always practice Effortless Action.
So don’t be desperate, just relax
When you relax, it will come to you.
By the way, nowadays my friend is not firefighting with the market. He is happy trader of simple trader community.
And you ? :)