Time and trading: Time is money
Most traders who I've met talk about price. They talk about where the price is going, up or down. You hardly ever hear them talk about time.
Time is a hugely important concept in trading, but it's a concept that is often dismissed or ignored. Poeple think the markets are all about price, but they are not. Time is just as important if not more important.
Time is currency
We've all heard the saying, "Time is money." Well that is never more true than in the arena of trading. In trading, time is the most valuable currency.
In my trading course I tell my students that the markets don't care about you. They don't care if you win or lose. It's not a personal thing. They will gladly give you money equally as fast or as generously as they would take it away.
Few people understand this.They think it's a competition, a battle, you against the market when in fact the market is compmletley ambivalent. YOU are the one who decides whether the market gives to you or takes away. You command the market, not the other way around.
A pay for play game
When I talk to my students I tell them that trading is a play for pay game. That means in order to play you have to pay. Most people take that to mean you need money to play. Well, that's true, you do need a cetrtain amount of money, but once you have ante'd up the minimum thee's certainly other "currency" that you can use. That currency is time. The market will gladly accept your time as currency.
What do I mean by this? Simply that you contrl time and for most peopel they havfe a lot more time than they ave money. Time means you can choose to wait and not play until you get hte best setup for you to trade.
Time means that when you are in a losing positioin you don't have to give your money to the market in order to exit and "cut your losses." The market will gladly accept your time as payment. Once you understand that you also see that losing, in most cases, is a choice. You literally choose to lose. The market doesn't ask this of you. It will also accept your time as payment.
Time is your most valuable resource
For more on this concept please have a look at my Forex trading course. In it I explain, in detail, the concept of time and how most traders have very litle understanding of it and even less of an understanding on how to use it. Yet, it's really the most important resource we have.
