I got this question today.
How do you personally get around from being “too early” or “too late” on an entry?
There are a few things that have helped me get over missing a trade or “being right” and not making money.
- Opportunity vs profit. I thought the market owed me profits. Now, I see the bars on the chart not as profit but an opportunity to profit. The market does not owe me anything. I owe it to myself to execute my plan to the best of my ability. Good things happen.
- Important feedback. If a trade develops in a way that I had not anticipated, it means I did not notice a change. It is now up to me to understand why or determine it was an aberration. Either way the market is giving me valuable feedback.
- Unlimited time horizon. One of the side effects of trading is missing trades. It is something that you have to get over. It is a fact of life. The next trade is always more important than the last one. You should have more experience and knowledge, right? Knowledge of yourself, the market, and the interaction between the two.
Said in one sentence. I get over missing trades because I do not have a sense of entitlement, willing to use the feedback, and know that it is just one trade in 1000’s or hopefully 10,000’s.
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