1. When you feel most frustrated
at missing moves, you are most vulnerable to losing money and trading
in a self-destructive manner (hereon called "trading on tilt"
to quote Charles Kirk from the Kirk Report). Do not let it play with
your head. Every trade is fresh.
2. Do not over think or get spooked — stay as close to neutral
as possible. Don’t pre-decide anything, just look for your conditions
to be met. Calmness is everything in this profession — in the
technical setup system itself and in your own emotions.
3. Remember many big losses have come after innocent small initial
losses and then from attempts to make up that loss. You can become
frustrated (by forcing trades), do lousy setups with no volume, chasing
spikes, or even worse, following other people’s trades.
4. If you get stopped out and are feeling frustrated, then the market
most likely is in “no win” mode. Step aside and start
fresh next day. Emotion is key. There are some days where it is very
difficult to make money.
5. Remind yourself how difficult it is to make money and how incredibly
easy it is to lose money. There has to be a reason for every trade.
6. Have Vision. Many times stocks sit there for hours above the entry
point. Remain in the trade as long as the breakout point is held and
then hold for the angle change (as buyers pile in) into real profits.
7. Be on your toes with opens in which you miss several quick trades.
Do not go tilt. Many tilt days come from opens that one has missed.
Just regroup and try again. If stocks are going up or down in a hyperbolic
fashion, there is high chance of reversal. If the move is indeed for
real, then there will be plenty of opportunities later in the day.
Remember that. Just wait for the pitch.
8. On a deeper note: Be at peace with yourself. If you feel like you
do not deserve to do well, then most likely you will not do well.
Do good, treat your body well, work hard, and everything else will
fall into place.
