- Market isn't always going to go your way
- Be ready to deal with downturns
- Know how to mitigate risk
- Seeing the big picture
SAVING GRACE(s) - It hasn't been the best week. But there are 2 saving graces here. 1) The week ain't over and 2) Even with all the frustration, we haven't lost any money. Now of course, when the market does what you thought it would do after stepping to the sidelines, not once, but a bunch of times, it can eat you up. I am human! And while it does eat at me, I also know over the long run, I can feel good that there is a method to all this madness.
EMBRACE IT - Nothing in life is ever going to go the way you want 100% of the time. And that really isn't what life is about. Life is about the times when things aren't going your way and how you deal then. It is the same thing in trading. There are going to be periods when your timing is off and where you're not getting it right. And so, the best thing to do is recognize this fact and embrace it. This way you can prepare yourself to handle these setbacks when they come your way.
LESSER OF TWO - It just so happens that every time I stepped aside this week, it ended up going in the direction I thought. But just because it played out that way doesn't mean this is the way it always goes. In fact, it doesn't. Sure. It happened this week. But there are so many times when I have stepped aside where the market would have crushed me had I stayed in. So I'd much rather be frustrated with a break even result, than having to deal with the frustration and despair of a huge loss.
THE LONG RUN - So the next time you feel your timing is off and things aren't going your way, don't get all down on yourself and think about the bad luck you are having. Instead, know that this is a part of life and a part of trading. Use it as an opportunity to figure out the best way to champion through the downturns. If you do this, I promise over the long run, you will be so much better off. We are defined so much more by how we are able to deal with life when the chips are down.