Hi Everybody,
If you ever read on the Internet that trading is easy and it is easy to make loads of money every day, then you know you are dealing with somebody that has no practical experience of trading themselves............. The fact of trading life is that there will be hard days, this is why I talked about the cyclical nature of trading only a few days ago, because all professional traders know that there will be hard days (or hard weeks or hard months) when making money will be virtually impossible. Please click here for my prior post on this.
As you can see form the chart to the right, yesterday was one of these days. With such small and choppy swings, it would have been almost impossible to make money yesterday.
So what should you do on days like this. Well, you should have been anticipating a hard day as we had such a brilliant week last week on the US e-minis, so your aim yesterday should have been to avoid all but the best looking setups (of which there were none) or be very very careful. In other words, during the hard part of the cycle your aim should be to just tread water and preserve your capital so you are then ready for when the profits come though again.
This is just a natural cycle of profits and losses that unfolds day after day, but few people talk about it because so few Gurus or software vendors are actually traders themselves.
Thanks
Steve
If you ever read on the Internet that trading is easy and it is easy to make loads of money every day, then you know you are dealing with somebody that has no practical experience of trading themselves............. The fact of trading life is that there will be hard days, this is why I talked about the cyclical nature of trading only a few days ago, because all professional traders know that there will be hard days (or hard weeks or hard months) when making money will be virtually impossible. Please click here for my prior post on this.
As you can see form the chart to the right, yesterday was one of these days. With such small and choppy swings, it would have been almost impossible to make money yesterday.
So what should you do on days like this. Well, you should have been anticipating a hard day as we had such a brilliant week last week on the US e-minis, so your aim yesterday should have been to avoid all but the best looking setups (of which there were none) or be very very careful. In other words, during the hard part of the cycle your aim should be to just tread water and preserve your capital so you are then ready for when the profits come though again.
This is just a natural cycle of profits and losses that unfolds day after day, but few people talk about it because so few Gurus or software vendors are actually traders themselves.
Thanks
Steve
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