Like many other traders, I was watching horrified during Monday afternoon's US session. I could see things unfolding, and I did not know whether to hold or cut my losses.
As the market continued to sell off, I couldn't take my eyes off the screen. Eventually, I walked away, and when I came back, my final trades had hit their stop-losses. Over the past three days, I had taken nine trades, eight losers and one winner.
Everything happened so quickly. I was scared and angry that the market was doing this to me. Afterwards, I was hollow. I felt those little doubts creeping in. The little voice in my head saying that I should have done something different.
By Tuesday I was feeling better and ready to get back into the market. Unfortunately now, when I open a trade, I find myself checking it constantly and as soon as I am showing a small profit I want to close it.
The lesson for me is that you can never stop trying to do the right thing. However long you have been trading it is always a battle to make the right decisions. I know that taking small profits and big losses is a bad way to trade, but I still have to force myself to make the right decisions.
New Tradinformed Videos
If you haven't seen them yet, I have been posting some new YouTube videos. Check out my pick of the recent videos below.
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Monte Carlo Simulation
The Monte Carlo Method random simulation to test results. As traders, we can use this to test how robust our strategies are. In this video, I demonstrate how to set up your own Monte Carlo simulation using Excel.
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How to test Japanese Candlestick Strategies
Excel is perfect for testing candlestick trading strategies. In this video, I demonstrate how you can program the candlesticks and run the backtest.
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Good luck with your trading!
Mark
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