Master Trader Reveals the Key to Consistent Profits
Master Trader Reveals the Key to Consistent Profits By Jeff Clark for Casey Research
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Justin’s note: No one can buy low and sell high all the time. But master trader Jeff Clark doesn’t get upset when he misses out on the absolute top or bottom. It’s all about making money – no matter the market environment.
Today, he reveals why the key to investor longevity has nothing to do with making maximum gains on any single position.
He tells us why it’s more important to focus on consistent profits – which you can only do by not looking back…
By Jeff Clark, editor, Delta Report
“Don’t look back.”
That was the advice the angels gave to Lot and his family as they led them out of the city of Sodom, just before it was destroyed by the wrath of God.
Whatever happened to the city after he fled was no longer Lot’s concern. It was no longer any of his business. He couldn’t do anything about it.
So “don’t look back” was the angel’s way of saying, “Look forward. There’s nothing to gain by watching what happens behind you. Focus on your future and what’s ahead of you.”
As the Bible tells us, Lot’s wife wasn’t all that good at following directions. She couldn’t resist the temptation to look back and see what happened to the city she just left. And she was turned into a pillar of salt.
Why salt? Who knows? Maybe it’s because too much salt can lead to high blood pressure and heart problems. Maybe it’s because a pillar of salt is fragile, yet immovable.
Whatever. The bottom line is: Lot’s wife shouldn’t have looked back. And neither should traders.
Once you’ve exited a position – whether for a gain or a loss – it doesn’t matter what happens to that trade anymore. There’s nothing to be gained by looking back at it. Focus on the future and the opportunities in front of you.
If you look back, you run the same risks as Lot’s wife… Not that you’ll be turned into a pillar of salt, of course – but that you’ll be rendered fragile and immovable.
Think about this…
If you’ve taken a profit on a trade and then choose to look back at it, then one of two things will happen:
The position will reverse. You will have sold at the perfect time. And you’ll expect to be able to do that consistently in the future. This leads to overconfidence and the belief that you’ll always be able to get out of town just before the market gods unleash their wrath. This is a dangerous thought process.