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.
