New Year, new dreams. New expectations and goals for what the next 365 days hold in store. I think for most traders, it is a time of the utmost promise for what it bound to be the “biggest and best” year ever! Inevitably though, by February some people are seeing their profits and trading dreams go up in smoke. How does that happen? All too easily. Many times when we set aggressive goals, or even moderate ones sometimes in trading, those goals transform into EXPECTATIONS and rather than a place to aim for, they become the only option. This creates a tremendous amount of pressure and can lead to bad decisions.
This week was one of those weeks that if you were not careful, you could have been hurt. Of course, by looking at DTS from the viewpoint of all 3 birds, you probably would have avoided most of the pain. The rest just took some common sense and a little experience. You see, as I spoke of numerous times through the week, we have not really seen a full return of volume to the market yet. On top of that, we had NFP in the second week of the month, rather than its customary first-week Friday. Generally speaking, that creates an environment that makes tons of good trading….difficult to impossible. So it was easy for me to just sit out of trading towards the end of the week and think about the following week.
That’s because I no longer have to pressure myself into gains to prove anything. There was a time that I had unrealistic and very lofty goals to get the year started off right. Gunning for outrageous gains that I in hindsight was crazy to think I could consistently achieve. I had the mindset that my best weeks should be the “standard” and anything less was failure. I would maybe have some nice gains to start a month or a week. But they were nowhere near what I wanted. So I would continue to trade thinking if I just increased the volume of my trading, I would achieve my goals. I started cutting corners and traded through all sorts of news even though I knew it was riskier. I piled on automated trading programs that I had not really tested to add to the account when I wasn’t manually trading. I had way too much risk open at all times, and didn’t sleep well, if I slept at all. I woke up to nasty surprises (although sometimes they were big gains) of huge losses. What always seemed like a nice trajectory to the month I had somehow always really blown by the end. Which of course, led to even more pressure and less capital to start the next month. It was a vicious cycle and made me want to quit trading altogether at more than one point.
I learned some hard lessons, but what I gained was the knowledge to avoid this trap again. Here are a few points I picked up along the bumpy road to help ensure you finish that month or week as strong as you started:
These days, I am much happier to trade less, and I somehow make more. I’m less interested in always swinging for the fences. Between analysis and DTS, we were able to sidestep bad markets this week and focus on next week, which should provide us better conditions to make some waves.
TESTIMONIAL DISCLOSURE: Testimonials appearing on www.IndicatorWarehouse.com may not be representative of the experience of other clients or customers and is not a guarantee of future performance or success.
LIVE TRADE ROOM DISCLOSURE: All presentations, videos, and information are for educational purposes only and the opinions expressed are those of the presenter only. All trades presented should be considered hypothetical and should not be expected to be replicated in a live trading account.
Commodity Futures Trading Commission Futures and Options trading has substantial potential rewards, but also significant potential risk. You must be aware of the risks and be willing to accept them to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS, IN GENERAL, ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Use of any of this information is entirely at your own risk, for which Indicator Warehouse will not be liable. Neither we nor any third parties provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or suitability of the information and content found or offered in the material for any particular purpose. You acknowledge that such information and materials may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. All information exists for nothing other than entertainment and general educational purposes. We are not registered trading advisors.