Tuesday, June 11, 2013

Dealing with losing days

When we go through a day when we lose money trading, as expected, we do a lot of hindsight analysis. I was talking to Debrink about this today, his thoughts:

"When we have a bad day, and we will, in retrospect you can see that you could have had a good day if only you had done x, y or z. That thinking screws everything up."

I totally agree! Why is that? Because the result, the fact that today was a losing day for example is completely irrelevant, if you followed your trading plan. If you took all the setups by your rules, and exited based on your rules, then losing days are simply part of the process, and every trade is one of the many thousands you will take over your trading career. Very insignificant from that stand point, correct?

Like I mentioned in yesterday's post, a trader's confidence should not come from winners, but from managing losers and the trading process well.

Onto the markets today..

Looks like ES made a very important low today, breaking which we target the 1596ish low and below. But then we're also setting a potential Inverse H & S, so will be interesting to watch.

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