As you can see, the 3min ES DP sell that was taken as OK as it was also at 15min DP resistance, but it resulted in a -1R loss.
It is amazing how many emails I get when a trader does all the analysis, and all seems OK, then a loss unfolds. They seem to think that they made a mistake, but this is not the case. You can do all the correct analysis and then a loss unfold. That is OK, because the loss is kept small. A -1R loss is far far far smaller than most of the profits MTP was making just a few days ago. Small losses and Big profits, that is what makes money over time.
There are just too many amateur traders who seem to think that they can analyze the market and be right 100% of the time. This is rubbish, no trader can do this. The reason we do analysis is to put the probabilities on our side, but yes, there will always be losses. But the tick is keeping them small.
Truly accepting this is probably the biggest hurdle most amateurs traders have to get by before they can become a successful professional.....
Thanks, Steve
It is amazing how many emails I get when a trader does all the analysis, and all seems OK, then a loss unfolds. They seem to think that they made a mistake, but this is not the case. You can do all the correct analysis and then a loss unfold. That is OK, because the loss is kept small. A -1R loss is far far far smaller than most of the profits MTP was making just a few days ago. Small losses and Big profits, that is what makes money over time.
There are just too many amateur traders who seem to think that they can analyze the market and be right 100% of the time. This is rubbish, no trader can do this. The reason we do analysis is to put the probabilities on our side, but yes, there will always be losses. But the tick is keeping them small.
Truly accepting this is probably the biggest hurdle most amateurs traders have to get by before they can become a successful professional.....
Thanks, Steve
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