Dale Pinkert has been trading for over 40 years—and he’s seen it all. He bought shares in a company that didn’t survive. He’s had to rebuild his account. He admits there aren’t many mistakes that he hasn’t made or personally witnessed. But he’s always found the strength to get back up, dust himself off, and forge ahead. He has the right trading mindset to continue when most would fold.
In this episode of How To Trade It, Dale shares his trading mindset and some attributes he believes every trader needs. We also talk about how trading shifts when the market is in crisis. Dale walks me through his typical setup and trading strategies. Listen to the whole episode to benefit from his years of wisdom and learn how he embraces a warrior mindset.Tune in to this episode of How To Trade It as I chat with the legend @ForexStopHunter about why you NEED the trading mindset of a warrior. #stocks #trading #StockMarket #Investing #DayTrading #StockPicks Click To Tweet
You’ll want to hear this episode if you are interested in…
- [1:12] How Dale Pinkert learned to survive
- [4:44] What is the trading mindset you need?
- [8:41] The attributes a trader should develop
- [13:58] How to maintain the right mindset
- [17:07] Dale’s RSI/3 Drive Pattern Strategy
- [28:50] A deep-drive into the 3 drive pattern
- [36:58] The elephant in the room: credit crisis
- [42:20] Dale shares some of his ‘Pinkertisms’
The trading mindset that will make you a survivor
One of the first things Dale and I talk about is the power of mindset and maintaining the right attitude: “You have to have a warrior mentality to survive in this business. And that means that you’re going to fight battles, you’re going to lose battles, you’re going to win battles, but it’s about winning the war”. Dale points out it’s about challenging the market instead of letting it challenge you.
The market is volatile right now and everyone is filled with fear. But that can’t lead to emotional decision-making. It’s more important than ever to be patient and manage your risk. Dale notes that trading is 90% psychology—and when it feels like everything is falling apart—the right mindset will make or break you. Dale and I talk about this topic in-depth, be sure to listen.
It’s all about planning & research
Before the day and age of computers, Dale would carry around a chartbook that he’d update by hand. When the markets were closed, he would sit at his kitchen table and plan without distraction. The rest of the week was all about executing what he’d already researched—you simply have to manifest the opportunities.
Dale believes too many traders have the wrong trading mindset. They don’t spend enough time in preparation. You should be analyzing and researching when the market is closed so that when it’s open you are simply executing. You can’t make impulsive decisions. Trading on impulse—without a strategy—will lead to a trader’s demise. Dale states that “It’s the traders’ biggest enemy”.Being a successful trader includes extensive planning & research. @ForexStopHunter shares his strategies and expertise in this episode of How To Trade It. Don’t miss it! #stocks #trading #StockMarket #Investing #DayTrading #StockPicks Click To Tweet
Attributes a trader MUST develop
Other than a warrior mindset and the ability to never give up, Dale shares a few key attributes of a successful trader. The first is patience. Dale voiced that “Patience is the key to the business”. Be flexible—let go of any bias or preconceptions about the market and be willing and open to change paths.
You also have to remove some of the pressure you put on yourself. Dale has a mantra that he repeats: “I miss trades every day and it’s okay. Because there’s always another”. You won’t always see every trade and you will miss some. Dale points out that it’s okay to do nothing—cash is a position too.
There’s no secret sauce when it comes to trading. It takes hard work, discipline, and perseverance. If the market scares you or you can’t embrace the trading mindset you need, do something else. Market conditions are ever-changing and volatile and you have to be willing to fight your way forward.
What is Dale’s typical strategy/setup?
Dale is known for his work with Relative Strengths Index (RSI)—or as he likes to call it the “Real Simple Index”—and his 3 drive strategy. He uses it as his filter and it helps him gauge whether or not to stay with the trend. In his reversal setups, he looks for three spikes to the upside or three spikes to the downside.
When you hit it going into that third drive you can get a nice tight stop-loss. Dale notes that you typically will see the pattern fulfill, and there are a lot of good traders who will wait for the confirmation. He recommends having another discipline in place to get you the long if you’re not seeing the fulfillment of your pattern.
In the remainder of the episode, we take a deep-dive into his strategy as he shares specific examples. We also talk about the impending credit crisis, and where the Forex lands in comparison to stocks/bonds.In this episode of How To Trade It, @ForexStopHunter takes a deep-dive into his typical trading strategy and walks through some setups he likes. Don’t miss this one! #stocks #trading #StockMarket #Investing #DayTrading #StockPicks Click To Tweet
Resources & People Mentioned
Connect with Dale Pinkert
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