By Michael Nauss

Whether you are a seasoned trader or just a novice who’s starting to dive into this fascinating world, you’ve probably found yourself confronted with many questions. “What do you think of Tesla?” “How about Nvidia?” It’s not uncommon to hear such inquiries. However, the reality is, dealing with these queries rarely gives insight into the world of real trading.

I often respond to these questions with a basic mantra: it’s not about what I think; it’s about building an astute “if-then” strategy. So, let’s delve deeper into this concept and see how it’s actually applied in trading.

The Art of If-Then Scenarios in Trading

Real trading happens by coming up with conditional propositions otherwise known as “If-Then” scenarios. This logical statement asserts that “IF” a certain condition is met, “THEN” another condition shall follow. In the context of trading, here’s how it could work:

If the first condition (with the queues) does not materialize, neither does the second step of investing in the Big Tech stocks. It’s a binary system of actions with future trades entirely dependent on what’s happening right here, right now.

Creating a well-thought-out “if-then” scenario offers a structured, logical framework to work within, reducing the chances of succumbing to emotional decisions. This approach ensures your trading decisions are more predictable and, more importantly, consistent.

The Briefing and Debriefing

Another important aspect of trading that often gets overlooked is devising a plan of action, or as many successful traders call it, a plan of engagement.

Despite the stress and exhilaration often associated with the stock market, patience is indeed a virtue for traders. If your if-then scenarios do not materialize in the current trading session, you wait.

As one seasoned trader put it succinctly:

“The market will be open on Monday. I’ll have all weekend to come up with a bunch of new ideas, with new information that has come in and then we’ll see what happens next.”

In the constantly evolving world of trading, the cycle of planning and reassessment is key. Just as the market always presents new opportunities, so too should you continuously refine your strategies.

Wrapping It Up

So the next time someone asks you, “What do you think of AAPL?” instead of diving into a deep analysis about Apple’s earnings or the launch of some new product, reflect more about your if-then scenarios, your trading strategy, and current market conditions. Remember, trading isn’t about predicting which stocks are going to explode in value, it’s about calculating movements, developing strategies, and consistently sticking to a plan.

With an astute if-then strategy, a well-crafted plan of engagement, and a good dose of patience, you’re already on the right track to becoming a formidable trader. Happy trading!