Listen, Evolvers…

Fear and skepticism often cloud the judgment of traders, leading to missed opportunities and costly mistakes. 

But what if I told you there were a few simple ways to potentially overcome these barriers and improve as a trader? 

The answer lies in harnessing the power of focus.

Today, we’ll dive into the crucial role focus plays in the stock market and how it can possibly transform confused newbies into confident and better traders. 

By focusing your singular attention, you can potentially spot five-star setups, mitigate the risk of major losses, and stay one step ahead of the market’s ever-changing nature. 

So, if you’re ready to take the necessary steps to conquer fear, skepticism, and uncertainty in your trading strategy … keep reading and I’ll show you how I’ve done it. 

Focus on One Trade at a Time

If you’re trying to track too many trade opportunities simultaneously, you risk missing the ones that matter most.

Our brains can only pay attention to so many things at once. 

For most traders, this means having no more than two or three charts up at a time.

Think about it…

Even if you have three charts up on your screens, you can only truly focus on one at a time. 

WARNING: This is one of the major advantages that AI-driven trading algorithms have over humans. The robots can watch thousands of charts at a time, gathering all of the information equally.

But, since we’re not robots, a vital part of being a great trader is having the skill to identify a five-star setup from a slightly less perfect one. 

Then, you should zero in on the ‘play of the day’ and tune out the noise … especially if you’re a relatively inexperienced trader.

And speaking of that…

Focus on One Day at a Time

In the current market environment, I think it’s best to focus on trading one day at a time. 

Instead of making long-term predictions or holding speculative swing positions, stick to short-term plays that aren’t dependent on what the market does next week (or next month).

Trying to make bets on future trends in this ever changing market can lead to disaster.

For me, day trading is far more attractive than swing trading right now. 

Take it from me…

I got absolutely smoked holding long-term puts on the ProShares Bitcoin Strategy ETF (NYSEARCA: BITO) toward the beginning of the year.

CAUTION: Don’t make the same mistake I did!

For now, don’t hold contracts for more than a day or two unless specific technical indicators are telling you to do so.

And if you do have the feeling that the trade may continue in your direction … sell part of your position to lock up safe profits while allowing a small portion of contracts to continue riding.

That said, be very careful when weighing the benefits of holding runners vs. booking profits quickly.

The Single Most Important Thing to Focus On…

Quite literally, the costliest mistake you can make — ESPECIALLY as an options trader — is failing to focus on sizing!

WARNING: You should NEVER risk more than you’re willing to lose.

If you plan on persevering through tough markets, you MUST avoid oversizing your positions.

This may sound obvious, but I see so many traders oversize their positions in a moment of exuberance, which often leads to disaster…

I got a stark reminder of this last year, when I lost $100,000 holding Tesla Inc. (NASDAQ: TSLA) puts too far into the bear market rally. 

This was one of the most disappointing trades of my career, and my biggest problem was putting too much money into the trade.

So, I’m writing this as much for me as I am for you!

BOTTOM LINE: Every prospective trader has to figure out how to strike a delicate balance between risk and reward.

This is a personal decision. It comes down to your personality, risk tolerance, and how much disposable income you’re willing to risk (and potentially lose) in the stock market.

But if you go over your boundaries and break your rules, it can ruin you.

This is why I advocate for hitting singles, especially when you’re first starting. 

String a bunch of small wins together. It’ll help build your confidence while simultaneously fine-tuning your trading strategy.

And the best part? By sizing small, you’ll never lose more than you’re willing to.

Final Thoughts

Focus, focus, focus!

It’s so easy to get distracted in the stock market. There are many temptations trying to sway you from the best setups. 

But the traders who truly rise above the 90% who fail are the ones who harness their focus to their advantage.