When you can no longer see the other side of the trade you have begun to lose. Maybe not money but your greatest asset as a trader, flexibility and adaptibility, is gone. Nothing is scarier in my life or as trader is when I have it all figured out. It means I am setting up for a great fall. Here is how it happens:
1) I take the outcome for granted.
2) I stop doing the work, no more work is needed because the outcome is already determined.
3) I ignore the warning signs.
4) I blame something or see it as an aberration.
5) I fall hard and have to start from the bottom.
Trading is difficult, not doing the work and ignoring all the signs makes it impossible. There is obviously a fine line and you have to figure that out for yourself. Remember; it is always about being able to trade tomorrow, whenever tomorrow is.
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