The Trap of Watching Every Tick
One of the most destructive habits a trader can develop is obsessively monitoring the value of their account throughout the trading day. The constant checking of profit and loss—every tick, every fluctuation—leads to emotional instability and poor decision-making.
This behavior stems from a deep attachment to money. And let’s be honest: nearly everyone has one. But in trading, this attachment can become a silent saboteur.
When a trader focuses too much on their account balance, they shift attention away from the quality of their process. They begin making decisions based on short-term comfort rather than long-term consistency. They cut winners short to lock in profits, or double down on losers to “get back” to even. Slowly, their edge is eroded—not by the market, but by their emotions.
Successful traders understand that account balance is a trailing metric, not a guiding compass. They commit to executing their strategy, knowing that outcomes will fluctuate, but the edge will play out over time.
Freedom in trading begins when emotional attachment to money is reduced. Focus on process. Focus on discipline.
Let the results take care of themselves.
Because if your identity rises and falls with your equity curve, consistency will always be out of reach.
I’ve written two go-to books for traders: Trading Course: How to Become a Consistently Winning Trader and 700+ Insights to Mastering Short-Term Trading. You can find both on my Amazon author page.
I’m also the creator of Trading Tales — a fun, satirical series that brings the trading floor to life through a cast of unforgettable characters. From impulsive gamblers to risk-averse overthinkers, each story offers a humorous (and surprisingly insightful) take on the madness of real-world trading. Whether you prefer paperback, Kindle, or audiobook, Trading Taleslets you enjoy the thrills, spills, and quirks of the markets anytime, anywhere.
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Lessons in Blue Chips
The trading floor was buzzing with its usual frenzy: flashing screens, rapid exchanges, and the occasional burst of laughter or frustration. Traders moved like clockwork, fingers flying across keyboards while others barked orders into headsets, their voices lost in the hum of the room. Amid the chaos, John Spinner stood out. His usual scruffy appearance was matched by a spark in his eye as he made his way toward Mortimer Sagecroft’s desk, his steps quicker than usual, as if he were on the brink of a great discovery.
“Hey Mortimer!” John called out, his voice cutting through the noise. “I just read in the paper that blue chips are going to be the big thing this year. "With the way my stomach's growling, I thought they were talking about a new sweet potato special! Got any idea what these blue chips are?"
Mortimer, the embodiment of calm amidst the whirlwind, glanced up from his screen. His expression softened into a knowing smile, the kind only a veteran trader could wear. He studied John for a moment before responding.
“Ah, John, my friend,” Mortimer began, his voice steady, “Blue chips aren’t sweet potatoes. They’re the giants of the business world. Think of them as the heavyweight champions—the companies that have proven their worth over time. These aren’t your flashy tech startups or risky ventures. No, these are the battle-tested veterans—companies that have weathered every storm, adapted to changing markets, and consistently delivered solid results. If you're looking for stability and a history of success, blue chips are your safest bet.”
John’s eyes lit up, a mix of curiosity and excitement. “So, where does the term ‘blue chips’ come from? And why blue, of all colors?”
Mortimer leaned back in his chair, his fingers steepled, considering the best way to explain. “The term goes back to a famous European casino in Monte Carlo. Blue chips there were the most valuable—the ones worth the most. The term eventually made its way into the stock market, and now it refers to companies that have stood the test of time and continue to perform at the highest level. In essence, blue chips are the crème de la crème—the best of the best.”
John’s face brightened as comprehension hit. “Mortimer, you're like a walking encyclopedia! You know so much, it's borderline unfair!” he said, half-grinning, half-admiring the depth of Mortimer’s knowledge.
Mortimer chuckled, the sound warm with years of experience and camaraderie. “Just sharing what I’ve learned, John. Knowledge is power.”
John leaned back in his chair, the gears in his head shifting. For the first time, he understood that the market wasn’t just about chasing the next big thing. It was about recognizing the value in consistency, in understanding the history behind a stock's worth. It was a shift in mindset, subtle yet powerful—one that could change how he approached every trade.
(a short story from The Trading Lessons of Mortimer Sagecroft)