A nice article as a reminder..
Don’t Get Cocky When Your Trading is On a Hot Streak
I’m just as guilty as every other trader for this crime. That is why I’m humbly writing this post to help you learn from my experiences. Getting cocky about a few winning trades when just starting can be the worst things that can happen to a new trader. And I’m convinced that it is the best thing that could ever happen when a trader who is willing to learn the game, loses their first couple of trades to let them know how hard it is going to be.
After three trades today, I am very pleased that I have 3 winning trades. If I would have done this a few years ago, I probably would have entered a couple more trades thinking that I was on a hot streak or I was feelin’ lucky. And I more than likely would have erased all of my winnings for the day.
That was then; and this is now. I am no longer cocky about a winning streak. Just as I am no longer easily discouraged by a losing streak. If my research is right, things will work themselves out in the long run. If things don’t work out, then I need to change my strategy. The bottom line about this short post is that if you see 3 trades for the day that look like good setups, and you win all three; then end the day with three trades. This is not a game. You don’t get a prize for having the highest win percentage. The winners in this game are the ones who keep the most money in the end.
So don’t overtrade, and enjoy and keep your winnings. This is my two cents worth of psychology that I have experienced and felt a need to pass on to my readers who are strugggling with emotions. Cheers, and have a great Tuesday.
Scridb filter
Wow that was strange. I just wrote an very long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say wonderful blog!
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