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When you think about your trading, have you realized just how small you are compared to the market, and what that actually means for how to make money and how to protect yourself?

Adrian here from Enlightened Stock Trading and I’m here in Northern California in one of the Redwood state parks and walking among these gigantic trees, which are absolutely phenomenal. And it really brings home to me just how small we are compared to nature. And as traders we need to have that same sort of mindset because we really are very small compared to the size and power of the market.

And we’ve got to remember that when things go right and when things go wrong, and particularly when you’re holding an opinion about the market, you might be right or you might be wrong, but the market is going to tell you. And our job is to listen. Because when we listen to what the market tells us and actually follow the trend or hold the trade that’s moving in our favor, we can make money very easy in a very stress free way and remarkably quickly.

But when we try and fight what the market is telling us, when we hold onto our trades for too long, when we don’t execute our stop losses, when we don’t step out of the way when the trend turns the wrong direction, that’s when we really get hurt.

Every now and then nature comes to a crashing halt, like something big and disastrous happens. Like there was this massive tree just over here and it’s fallen or been burnt and then fallen down and so it’s like something catastrophic has happened. So the power of nature can shift very suddenly.

But the sheer magnitude of it means that you’ve got to keep yourself safe. You’ve got to stay out of the way when something big is happening, and in the markets with your trading, you’ve got to do the same thing. Follow the trend. And when the trend shifts, when things get volatile, either make sure you’ve got a trading system that profits in those times or stand aside.

There’s absolutely nothing wrong with going to cash when the market is moving against you. You’ve got to follow your rules though. So we don’t panic and run to cash. When we get our sales signals, we’d go to cash intentionally and that will keep you safe, keep you alive, and make sure that you’re there for the next major run up in the market. So when the market turns down, listen to the signals, take your exit signals. Do not hold on.

This idea that you see in the crypto markets of hold on for dear life is absolutely mental. You don’t want to be doing that because that’s you trying to fight the market, trying to hope that the market is wrong and it’s going to turn around and keep going in your favor no matter what it’s telling you right now. And that is just financial suicide. Listen to the markets. We are all small as traders compared to the size of the market.

My name’s Adrian Reid. This is in Enlightened Stock Trading coming to you from the Redwood National Forest. Bye for now.