When you make a losing trade you must reassess the market, identify why the trade was a loser and look to evaluate what is going on in front of you before re-entering the market.
It is vital that you never panic when it comes to making a Loss and let the next opportunity come to you .
Don’t increase your activity (over-trade) or increase your size just because you are down and looking to chase the market and your loses .
A trader must be mentally in the right position to make his or her next trade .
You must demonstrate discipline throughout the day according to your concrete plan ” This is trading and what trading is about after all ” – Not gambling , your ability to take a loss and then move onto the next trade without it having a negative effect on the manner in which you trade .
Professional traders emphasise the importance of “trading as if you have a flat book” – considering the position as it is, rather than reflecting on previous losses or gains.
It is vital you stick to your plan and don’t react to your own P&L, remaining calm comfortable and confident at all times .
Finally … Self Quote ” I,ve always found it profitable to study my mistakes “
The Most Important rule and Goal is not to repeat the mistake you made today.
Remember to Look back at your day and the errors you made and identify why you made them. Make a commitment to eradicate them from your strategy; this is essential to your development to become consistently profitable and a successful trader .
“The Trading wisdom Edition”
Copyright © 2010 tweeterTrades
“A man who has committed a mistake and doesn’t correct it, is committing another mistake. ” Confucius
“An error doesn’t become a mistake until you refuse to correct it.”
– Orlando A. Battista
” In the very long run , your results at the poker table will approach
the sum of all your opponents mistakes less the sum of your own mistakes “
— Dan harrington professional poker player