Equity run update: $11,056.
It’s football season again. It’s time for coaches’ press conferences… When they talk about being “out-played”, “out-coached”, and “out hustled” by the other team. When the market beats you up, do not try to “out-hustle” it. You will only make the losses worse.
It’s been a tough stretch the last couple of weeks. I’m thankful that my trading balance is still intact, but these are the most challenging times to be able to do so. The times after a sequence of well-executed trades that just don’t produce any revenue, or worse, generate an initial open profit but then turn around and become losing trades in a single day. Big reversals, mostly unexplained by the daily news, just another swing of the markets. I just got hit with a couple of them and in the discouragement it is easy to try to make up for the losses with more trades, trying to hustle myself out. But these are exactly the times that it is best to do nothing.
There is ALWAYS another trade.
During difficult stretches, it is more important than ever to stick to the original trading plan and just wait for the right pitch. Become even more discriminate. At risk of becoming gun-shy, stay out of the markets until the right trade comes along and start rebuilding confidence together with your trading balance a little bit at the time. Use this time to look through your journal to identify any negative patterns or try to analyze positive trends in your decision making and thought-processing.
If you notice that you can’t stay out of the market and have to have a trade on at all time, double-check your addiction level to trading! The charts are running you and you aren’t running your portfolio. I struggle with this pattern, still. The times that I am able to take a break, I discover a renewed sense of control and confidence that allows me to be very selective with my trades improving dramatically my success rate and my returns.
trade to live. don’t live to trade.