Hi Everybody.
You have heard me talk about the Cyclical nature of Trading a few times, well yesterday was a brilliant example of how we are now in the harder part of the cycle, which has come after a few good days on the US e-minis. As such a hard day yesterday should have come as no surprise.
There are too many amateur traders who expect everything to work out perfectly each and every day, this is not how the real world works. Trading is about probabilities and sometimes you can do all the analysis you like that points to a high (like on the 15min Russell yesterday, which was at DP resistance early in the day) for it to decide otherwise and the rally continue. Does this mean you have done something wrong, not at all, it just means that we are in the hard part of the cycle.
Trading is not about “predicting the future” it is about making money, and sometimes there will be losses or hard days. It is your job to either not trade when the picture is unclear or take the losses but keep them small (-1R) so you are ready for the good days when the big profits unfold.
Again, this is just the natural way trading unfolds. So to become a professional trader we all must understand this and accept it. There are too many Gurus who do not have a clue about real trading, who simply do not understand this, so many newer traders get fed misinformation by some Gurus. So when they come to us, and we tell it like it is in the real world, it comes as a bit of a shock. So that is what this daily Blog is all about, to tell it like it is, the Good, Bad and the Ugly, to help you prepare for how to tackle trading in the real world...
Thanks, Steve
You have heard me talk about the Cyclical nature of Trading a few times, well yesterday was a brilliant example of how we are now in the harder part of the cycle, which has come after a few good days on the US e-minis. As such a hard day yesterday should have come as no surprise.
There are too many amateur traders who expect everything to work out perfectly each and every day, this is not how the real world works. Trading is about probabilities and sometimes you can do all the analysis you like that points to a high (like on the 15min Russell yesterday, which was at DP resistance early in the day) for it to decide otherwise and the rally continue. Does this mean you have done something wrong, not at all, it just means that we are in the hard part of the cycle.
Trading is not about “predicting the future” it is about making money, and sometimes there will be losses or hard days. It is your job to either not trade when the picture is unclear or take the losses but keep them small (-1R) so you are ready for the good days when the big profits unfold.
Again, this is just the natural way trading unfolds. So to become a professional trader we all must understand this and accept it. There are too many Gurus who do not have a clue about real trading, who simply do not understand this, so many newer traders get fed misinformation by some Gurus. So when they come to us, and we tell it like it is in the real world, it comes as a bit of a shock. So that is what this daily Blog is all about, to tell it like it is, the Good, Bad and the Ugly, to help you prepare for how to tackle trading in the real world...
Thanks, Steve
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