- If it isn't perfect, don't trade it
- Stay away from trades you just like
- Only take positions you love
DON'T DO IT! - Today is a perfect day to get sucked into a bad trade and regret it in a big way. Many of you may be looking at the recent pullback in AUDUSD and bounce in USDCAD as missed opportunities. And it's possible they may prove to be missed opportunities. But the fact is, the trades weren't really there as extended as they were the other day, and we didn't get that one more push I was looking for that would have had me taking a shot. That's OK! We can't catch every trade and every move. Our job is to keep waiting for the trades that we feel great about so that we can be in the best possible position to profit when these trades play out. If I would have jumped in and sold Aussie today after it had pulled back and it would have ended up making a profit, I still would have been uneasy about the profit given the fact that I deviated from my methodology and discipline.
WRONG KIND OF SHOT - Sometimes you can hit a shot but it's still the wrong shot. The damage that would have been done had I taken a trade like this that wasn't there, would have been far worse than any possible upside. It's imperative that you understand this fact as a trader. You simply can't catch every move and there will be moves that you thought were going to go a certain way that you didn't capitalize on and that's fine! You need to determine what it is that you want out of a trade set-up and make sure you NEVER settle (I'm talking about trade entries). The set-up has to be gorgeous and nothing short of that. Otherwise, if it isn't gorgeous and you take it and it doesn't work out, you will kick yourself and tell yourself you never should have taken the trade because you only liked it and it wasn't the beauty you were really waiting for. At that point, you just end up saying 'F&%K it' and trading recklessly. If you can get a handle on this, you will be in great shape and well on your way to that next level as a trader.