The times one trade can really put a damper on your self esteem is unlimited. So what do we do to keep from dealing with frustration. Take the time to build up discipline obviously! Easier said then done. A perfect example was a trade I made this morning. Lets take a closer look at how I screwed up.
I placed a short position at 2385.25 right before the opening bell. My indicators were almost in sync and I took a stab. That decision totally wrecked my morning. I quickly covered at 2387 only to realize later in the morning I could have covered break even. In hindsight it was a good trade. In reality it was garbage. volume in MacD was picking up slightly and looking back at pre market I should have stayed out. I attempted to snipe a short at 2391 and it never got filled. Would have been a nice few points on the way down. I kicked myself and just stayed out after that because of the all day sideways trend.
My point here is don’t take low probability trades. They will bite you in the ass. At two different times I could have shorted and came out with at least 2 points on the day. No biggie though. Always tomorrow. The two trades I wanted to enter were both pretty high probability trades and all my indicators plus gut told me to short. I was too picky with my entry and never got a fill. That happens.
The important thing to remember is to focus on quality and not quantity. I’ve always leaned more towards scalp trades. However after trading with Paul I realized that more solid entries provide a nice run to the tune of 1-3 points or more depending on the strength of the trend. The trading day usually provides at least a handful of these good opportunities a day. Sometimes with more profit and sometimes with less. Paul sniped a nice point today shorting around 2392. I was not at my desk until he was already in. Was a nice trade in the end! He took a point and ended the day in the green. Which we both love!
When you trade next, keep in mind my example. Don’t take a trade just to trade. My gut told me to wait and I didn’t listen. Although not a big loss, I don’t like down days. No one does. Look for those solid trades when they come and again, take hat the market gives you. Sometimes it comes when you least expect it.