Trading should be easy, but sometimes traders make it too complicated. I have been thinking about one of the principles of trading consistency mentioned in Trading in the Zone.
I completely accept the risk or I am willing to let go of the trade.
I was doing well last Monday, and Tuesday but somehow lost my focus as the week progressed. When I was focused, I put on a trade with a stop and let it work. I knew and accepted my risk. During Wednesday I got stopped out frequently and fear crept in again. The same thing happened on Thursday. By Friday I was a bit discouraged and I lost my ability to see any setups. When I got good trades I often exited earlier and missed out on the gains I would have if I followed my exit criteria.
I think in order for me to really gain consistency I will have to let go of my fear of losing money and let my trades work.
- I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.