Hello everyone! I'm looking to hear from you experienced traders. What is your mentality during trading? specially when you're not in a winning position?
If I am not in a winning position then I am on the sidelines. Right or Right Out. Trading is discipline. If we can’t keep our heart rate within sigma #1 then we better cut the position in half. Learn to lose. Small and Often. Enter once the action / reaction of the market is leaning towards your best judgement. Set the targets (One Cancel the Other) and let the market work for you (in average). Or wait for your obvious and easy signal to exit the position without being tortured by the noise in between. Wether you lose, or win, on this particular trade shouldn’t bother you. What matters is your ability to take the next one (Survival). + the PnL over the next 100 transactions. Why are you feeling this way ? Find the painpoints and solve for them. Is it about the Plan ? Execution ? Else ? You can’t be worried about each and every adverse tick … If your target is 10 ticks and the immediate bias is around 60/40 then the market’s likely going 30ticks in your favor and 20ticks against you (in average). It’s said to think in terms of probability or expectation value.
Simple, anyone who says you can trade the markets without exposure to losses is lying to themselves and then to you, the key is to make those losses as close to zero as possible while having winning trades, when we get it right we have a 9:1 win:loss ratio but the trades are so few and far between you would never be able to do it, algo trading 100ms charts we get 1-2trades per day each of a few minutes while monitoring 4-6hrs.
%% STUDY trends ,study counter trends, mainly study trends + some counter trends. Enjoy a Paul Tudor jones Ducks Unlimited ad. Note the trend+ main trend is profitable on monthly candlecharts......... Sell some cash copper most anytime; if cant sell hi grade copper, #2copper can work well. Study SPY + tech trends, big tech trends + other tech trends.