Unfortunately, we are all very familiar with our ego’s need to get all our money back following a poor trade; with each poor decision followed by an equally poor decision. Let’s leave that for another day; the most devastating situation, for me, is addressed below.
How many of us has had a beautiful start to a day followed by substantial giveback, often exceeding the previous positive return. When traders get overly excited or enthusiastic that excitement sends them looking for a trade; if you go looking for a trade, you are very likely to find one: however, the odds of that trade being destructive are very high.
The key is to let the trade come to you; at first, this may not resonate with you; however, if we reflect on it, over time you will begin to appreciate the value of this concept.
Recognizing when the trade comes to you starts with reflecting on the concept itself; when you are forcing a trade or looking for a trade you are likely to feel emotionally tense and concerned that you will miss the trade if you don’t jump in now. When the trade comes to you there will be a calmness and level of comfort that is very reassuring.