Friday's results: No trades triggered.
Quick Tip: Focus on This
Novice traders focus on how much they are winning and losing. Every entry, hoping for a winner. Every stopped exit, wishing it didn’t happen. This is incredibly destructive behavior. You’re teasing your emotions, begging them to overrule your common sense.
Here’s how to stop:
1. Get a rule-based trade plan.
2. Document every trade opportunity including the trades you didn’t take.
3. Create a rich database of evidence with hundreds of trades, maybe thousands.
4. Calculate the win/loss percentage of your strategy.
5. Calculate the average winning and losing trade in dollars.
6. Calculate the net gain and divide by the total number of trades.
Now you know the amount of money you make every time you click to enter regardless of outcome. That is what your mind should be focused on when a trade setup triggers. Not winning or losing. But knowing with statistical relevance that over the long haul your strategy earns $X per trade.
For example, let’s say your average trade (winners and losers combined) netted $50, $100, you name it. If you were confident in that result, why would you focus on individual winners and losers? Why focus on how much you’re up or down today? Why ride the emotional roller-coaster? Re-focus. Think about the long haul.
Today’s Best S&P Turning Points (in fast moving markets consider a wider stop and less size):
Sell 4147.00 stop 4152.75.
Buy 4154.00 (on the breakout) stop 4148.25.
P.S. What’s more important in trading? Math or emotions? Learn how to change your unwanted behavior here.