Click on chart for a larger image of the eMini S&P (ES) market.Some days as a trader simply don't work out, and your best trade of the day will be a BREAKEVEN trade. This is the nature of the business that we are in. Although, you can continue to take the best possible trade setups, they simply will not work out in a given trading day.
Today is a perfect example of trading your plan, and the market simply not having any followthru. Should it have went and made you money today?
That really is the wrong attitude to bring to a trading day. What you are trying to accomplish on each and every trading day is to be the best trader that you can be. By remaining DISCISPLINED, PATIENT, and under SELF-Control at all times.
These days do happen when the best trade simply is the breakeven trade, and your remaining trades turn out not to be winners. The key is to stick to your trading plan, work your way through your losing streak. Decrease in account size, if you plan calls for you to do that, and continue to plug away.
If you happen to have a castatropic day that you lose your discipline, etc. Then the best course of action in this case is self preservation. If you blow your trading account out in one trading day, then you will not be ready for the trading day where everything goes right, and makes this day a distant memory.
In summary, my advice is to always stick to your trading plan. Remember the trading rule. Plan Your Trade, and Trade Your Plan in that order. If you have your trading plan down, then the rest will follow. Sure you will have "losing" trading days, but if you remain disciplined during the drawdown period, then this will make you a stronger trader in the days, months, and years ahead.
It has been said that trading is a MARATHON and not a SPRINT. So don't trade one day like a sprint when you should continue to keep your longer term goals in mind. Yes, you will have setbacks, and drawdowns. Get use to it!! Or find another business to go into ... trading has been said to be a zero sum game ...
What makes the difference as traders is the key word DISCIPLINE! Discipline in following your trading plan, and continuing to perservere. Don't give up, and DON'T allow ONE DAY to blow your trading account!
As Annie says, "the sun will come out tomorrow."
Good Trading,
David "Tiger" Knight
www.KnightCapitalManagement.com
2 comments:
( you took a few bad trades today and did not post them, why? )
This is a highlight of trading opportunities. Good ones than showing losing trades.
Occasionally, I show non winning trades. I wouldn't call them bad trades, they are trades that we're according to plan that didn't work out.
Overall we continue to maintain a 65% Win/Loss Rate with a 2.20 Profit Factor.
Thanks for asking ... come on into the trading room.
David "Tiger" Knight
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