LISTEN UP - While markets are somewhat on the move right now, I am in the positions I'm in and waiting for the next ones to come my way. So right now, I'm in the familiar sitting back phase, chilling out and observing. With that said, I'd like to spend today's update reviewing to critical trading rules that you should try and adhere to as hard as it may be to want to resist. What I am about to tell you sounds incredibly obvious, and yet, for some reason, people just can't get it. It's almost as if many out there prefer to suffer. As a reminder, Einstein once said that insanity is doing the same thing over and over and expecting a different result. So if you feel you haven't hit your stride and keep bumping to the same wall, listen up.
SCALE DOWN - The first thing you need to do immediately is scale down. I'm fairly certain that if you haven't been successful, it probably has a lot to do with the fact the you've completely obliterated your account. You've done this because you have some grand illusion of turning $1000 into $1000000 and it isn't going to happen. So take your time and keep trading the trades you love, but do so with much smaller position sizes that make sense based on your account size. If you do this, you will start noticing that you can think clearer, sleep better and actually make money! So remove the stress of trying to be a big whale when you really aren't and maybe one day you will actually be a big whale.
JUST BECAUSE - The second thing you need to do is to make sure you don't trade just because. The 'just because' trades are the worst. There are many reasons people take the 'just because' trades. Sometimes a trader is down a lot and wants to take some more action 'just because' it will make him feel better. Sometimes a trader is completely bored with no trades out there and will take a trade 'just because' he wants to feel alive. And sometimes a trader has been on a great run and will take a trade 'just because' nothing can go wrong. Well let me tell you something.....when you're trading on the 'just because' model, you will fail. Stay away from these trades and wait for the trades that are truly worth your time and I promise it will make all the difference in the world.