Too often traders are too concerned with what they are missing out on; what they're leaving on the table. Even when they are ahead of the game and winning, they over concern themselves with what they are not getting. First of all, always stop and congratulate yourself when you make a profit trading. That is one of the hardest things to do for the average person. Second, realize and understand it could always be worse and at least you didn't lose any money.
A friend and mentor of mine recently passed away and I'm reminded of what he taught me... "Don't concern yourself with profits. Focus instead on reducing losses. Successful traders generally go into every trade expecting a loss." That used to floor me and even now, it sounds a bit silly. But it's true. When I trade now, expecting to lose keeps me honest. On my toes. I know that losses are going to happen and to be prepared. So when wins come around, I always take that experience with a smile and appreciate the fact I didn't lose money.
Today for example, everything started out great. Both the S&P E-mini and Crude Oil were falling off the table. My account kept going higher and higher. Even still, I took time away from the computer, made a snack, watched some TV, and generally glanced at the computer screen every 5-15 minutes to lower my stops and check in on what was happening. Generally speaking, I'm extremely relaxed when I trade because I understand that whatever I make, may be taken away in the near future. I'm level headed to understand that I may lose, I may win, but I must stick to the game plan and take every trade that fits my method. It's through this process that in the long term, results will be favourable. Getting back to today, as price was making me look like a superstar, all of a sudden the market got a bit choppy, then reversed taking my stop out and leaving me with exactly half of what I was up just minutes before. Without any indication that the trend had changed, I proceeded to sell the market again once I saw another red bar appear and close minutes after that. Once again, my stop was hit and the market pretty much shot up like a rocket ship blasting off, leaving me with one win and one loss for the day (like I said before, I don't trade Crude Oil after 2:30pm EST).
Was I sitting there upset that I was wrong once? .. Nope. Did I feel a bit bad that I was only able to keep a fraction of what looked to be a much better result... maybe just a little in the moment. I ended the day with a good profit, even though I was 1 for 2 and that is what matters. I could have just as easily left with a loss for the day, but I didn't. I'm appreciative that I was able to make the little that I did and like always, I will sleep well tonight. Not every day will be big just like every day won't be bad. It is what it is. Take those wins with a smile and leave the shoulda coulda woulda's for the other hopefuls out there. Nobody knows the future.
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