Patience with a reason pays. Doing anything with a reason pays.
Yesterday, there was not much to do. I traded 7 a side. I never got a chance to get a full position. I made a little money but it was not in a repeatable way. Meaning it could have gone either way. I save a little bit of ” pure risk” capital each day. Important, I have earned the right to do this. If you are trading more risky setups keep a track of how you are doing over. The trades you missed will always stick out more in your mind if you do not have a hard copy next to you.
So, I came into this day knowing that I had to wait. I was oversensitive to it. I got lucky yesterday was not going to take the same risks. I knew that the thing I had to work on was patience. I knew I had to fight that gnawing feeling you get by just watching. I felt it coming yesterday.
Finally, everything came together. There was a clear set up and I had a chance to get a full position and it worked well. As a trader that is what you look for.
The next setup came and it was a buy. It was as solid of a setup, like the first, took almost no heat and just straight up puked it. In retrospect, I used up too much of my patience. Everything I know about trading was erased because I ran out of patience. It was like my first trade again.
I had a cushion, should have been an easy reset. I was right to puke it because there was no way I was going to make the most out of the trade anyways. A good decision is not based on what a trade does, it is based on what you did with the information at the time. Let me say that again, even though I bought the current low and it rallied does not mean it was a poor decision to get out. The poor decision was taking the trade in the first place, I was not going to compound it by staying with it, regardless of what could have happened. For the third time, it was a mistake to get in it and I did not want to compound it or reward myself.
The decision was easy. The money is not as important as the lesson. Experience lets you see things a little quicker but without taking action, it is wasted.
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