Giving back profits and taking too much risk.

There is no profit too small you shouldn’t take it.  If the market isn’t giving you anything it is ok to peel it off.  Start again.  The best traders get in and out on the best ticks.   This is much easier to do trading multiple contracts because entry and exit risk is not as great. Don’t risk the most when you are weakest. Double up to make it up does not work over time.  When you are down money it is because of the market, you, or your system.  Have a reason to risk more don’t let your being down money be that reason.  Would you rather have an interview when you are sick or healthy? When you are losing there will be a tendency to find comfort.  Money is the least important thing when you are losing.  The little ting you feel when you take a trade will be the most important. It is that feeling of opportunity, that feeling of I am going to get them this time.  That is comfort, you have to be in it to win it. At that point take a break.  When the most important thing is making your money back instead of making money you are at a disadvantage. Every trade is my first of the day. The start of the day is cleansing.  You have had time to separate the previous events and the emotions associated with it.  Removing the baggage that can happen throughout the day is an essential skill set.  Approach each trade as far removed from emotions as possible.  When you can’t do that anymore it is time to stop.  Very few days are perfect, get use to it. Until you close out your position it is not your money. Seeing your profit spike is exciting, the first time I saw +$1000 I was on top of the world.  Then it went to $900 than to $600.   I didn’t have an exit, except for a stop.  When your only exit is a stop it eventually gets hit.  Every trader wants to let it run but at some point the market will retrace. Secondly, that is not your money.  Do not chase it.  This is true about stopping for the day.  Until you are flat that money is not yours.   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 twitterstocktwits, and facebookSubscribe to Traderhabits by Email

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Losing the battle to win the war.

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