The following is a list of phrases that should be a red-flag to you if you hear them or read them.

More than likely, if one of these phrases is said, it is said by a person who does not have a definable process and trades off of ‘inhibition’, ‘gut’, ‘feel’ rather than a process that is quantifiable.

Disclaimer: By no means am I immune to all of these. Sometimes my emotions get the better of me despite having a process, but that is called being human.

  • I know….
  • I hope…
  • I knew…
  • I feel…
  • I nibbled…
  • I thought…
  • It’s worth a shot…
  • Generally I…
  • Most of the time I…
  • Pretty sure…
  • This is the top….
  • This is the bottom…
  • You have to…
  • It’s a bargain…
  • It can’t go higher…
  • it can’t go lower…
  • Based off the recent news…
  • Ebola means…
  • ISIS is the cause…
  • It said in the WSJ that XYZ is going ___, buy/sell now
  • They don’t make good products…
  • I am going to make money… guaranteed

Ok, that’s a comprehensive list but by no means exhaustive. There is probably an infinite number of these type of phrases out there. The point I am trying to get across is that a process is vital to controlling emotions and finding success in the markets. 

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Ben C. Banks is a momentum swing-trader with a time horizon of 5-10+ days. His goal is minimize downside and portfolio volatility by enacting an intensely disciplined approach involving unique technical patterns. The information in this post represents Ben’s own opinion and does not contain a recommendation for any particular security, asset or investment. Please invest at your own discretion. 

If you would like to contact Ben, please follow this link: Contact Ben

“Red-Flag” Phrases