Be Right, Even When Wrong

I know what you're thinking... How is that possible in the world of trading? Well what I mean by that is, follow your proven system, time and time again so that even when you lose a trade, you know that in the long run, you're always going to win. It gets back to the previous points I made in the posts and I'm sorry if I sound like a broken record but always stick to the plan. Stop trying to win every trade. Stop changing your proven system when you take a string of losses. Relax, breathe, and think about carrying out your system on the very next trade because only then, will you be on track to build sustained wealth. Most traders become statistics because they just can't let the losses go. It consumes their mind and they go a bit crazy in the process. Soon after, goodbye capital.

Personally speaking, during the last week of August and the first week of September, I have doubled my trading account in value. As great as that feels/felt I'm aware that drawdowns and losses are around the corner. This is because that's the way the market works. Now if I lose half of my account in the next few days then we obviously have a problem. Generally, what you make when the market trends nicely, will be reduced by a certain percentage following that run. The trick is to stick to your system so that once the trend resumes or picks up again, you can be there, and who knows, you may double your account once again. Always be prepared to give a portion of your earnings back to the other players. It's the cost of doing business. But if you can take $10,000 and turn it into $100,000 in one year, do you really think you're going to concern yourself with thinking about all the losing trades you had along the way? So please, keep looking at the large picture... Trade by trade you will get to where you want to be. It's just not going to be a straight line. Remember, always position yourself to be right, even when you lose a trade. Your financial future depends on it, literally.