What to do after having a monster day.

Lets face it we are traders for the unlimited upside, having no customers, and no employees.  When you achieve that unlimited upside, what do you do?

The first time

The very first thing you should do is to order a check.  Take the money out.  Spend some on yourself.  Enjoy it.  You reached the next level.  Save the rest or prepay some of your bills.

I think you should enjoy it because chances are you worked awhile to get it.  I think you should spend a little but that is up to you.  But you have to take that money out.  It cannot be in your trading account.  If you go from trading on a $25k account and now have $50k or $100k account you will trade differently.

One of the things I have harped on a million times is knowing why you are making and losing money.  Is it the market, your strategy, or you?  Chances are, if it is your first few monster days it is not you.  More money will change how you trade, your results will change.  It might change for the better but at least the first few times you will completely privatize the gains and give you false confidence.

Taking the money out prevents you from trading larger.  It also prevents you from losing more than you normally do.  No one likes to wire money to their account but it forces you to stop before the damage is too deep.

After many times

After you have had many monster days their is evidence that you are making money because of you with help from the market and your strategy.  Now it is not as important to take the money out.  You can afford to take more risk and you know how to get the most of that risk.

I still think you should take some of the money out of your account but not the whole amount.  Not taking the money out is like trading without a stop.  After you have had a few monster days, you will know better how much to take out.

Conclusion 

You did it, you finally are getting rewarded for all of the hours, the discipline, the struggles.  DO NOT WASTE IT.  Act with a reason.  Making the money is the easy part, keeping it and doing it again is what makes you a trader.

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2 Responses to What to do after having a monster day.

  1. […] every big day you should read this post.  I firmly believe that until you have done it a few times that the gains will be erased.  They […]

  2. […] every big day you should read this post.  I firmly believe that until you have done it a few times that the gains will be erased.  They […]

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