Robert Sinn has a good post out today. You can read it here. He makes a point about always having the opportunity to control your destiny. We refer to it as being able to trade tomorrow.
I was talking to a friend about a potential career move. It is a higher risk/higher reward move. The first thing I told him is to make sure he understands the potential risk. That never means accepting failure. But many times a decision takes you down a path. As you move further down that path it becomes harder to turn around. Decision making when the pressure is on normally does not improve until maybe at the breaking the point. All but the first time is a waste of energy, time, and usually money.
I touched on it in the previous post but if you do not know what you are risking on every trade you will never be able to accept the negative outcome in a positive way. This is the point where you are most susceptible to revenge trading. Letting one mistake turn to two or 10 or career ending.
Allow opportunities to multiple not mistakes. Know what you are risking before you risk it. Revenge trading feels good, like taking those shots of house tequila at closing time, but consequences are not worth it. There are decisions that are good at the time and there are good decisions. Know the difference.
The cure for revenge trading is asking yourself, do I want to be a trader? If so, act like it.
We would really appreciate your feedback, if you like, hate, or think we are full of crap. Please leave a comment, a voice mail (312) 725-9121, email info @ traderhabits (dot) com or twitter, stocktwits, youtube and facebook. Subscribe to Traderhabits by email or to newsletter.
