Below is an email I got from a client and a textbook example of where your mind needs to be after at bad day.
As you know last week I had a limit down day. I recovered that in two days and on third day I was back in the green from the loss.
The saying goes brick by brick to get it back. The second day is usually worse than the first day if you need motivation and a reminder that it can get worse.
Monday of this week was a good day for me.
Getting back in the grove again.
Yesterday I totally imploded again. My first two trades were full boat losers. It is usually at this point I ask myself, “Is it worth it to take the next trade?” As three full boat losers take me to limit down.
Not back in the groove after all but understood was making a mistake, even if it was not immediately correctly. Yes it is important to be able to take action but first you have to recognize it. This trader may make the same mistake again but it is a step closer being able to fix.
I broke a rule and entered my third trade without a confirmation. You can probably guess the outcome. First time this year I had limit down days in back to back weeks.
The mistake. I already knew what he was going to say because I have done it. When you are thinking like that, the money does not matter. It is gambling and not trading.
I don’t mind losers as long as I follow the rules. I kicked myself all day yesterday.
This is important for coming back. Many traders can’t differentiate the two because they do not have a solid set of rules that allow growth, they generally just have limitations.
This morning I woke up with a clear head. I have been trading since 6:45am, and extremely close to making up yesterday’s loss.
So back in the grove again. The story starts over.
I followed my rules, except for a few trailers I cut early just to hear the register ring.
He followed his rules and adjusted. There are moments when not losing is more important than winning. This is especially true when coming back from brutal days. I know when his situation changes that he will make that adjustment back.
I have been doing this long enough that I know what happens when rules are followed and broken.
He believes in it and knows it works. Getting off the path is never fun but it happens. When it happens don’t let it destroy you. You will need it for the next time.
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