During the process needed to attain a level of mastery in the markets, every trader will reach a stage where he will begin to doubt himself and his abilities. This will typically be the product of several losses in a row, sometimes produced by a faulty use of a strategy, or by lack of follow-trough in the market (usually due to a faulty read of the market’s stage), but in some cases it will just be the product of odds (Yes, my friends, there will be events that will produce unsought outcomes). In any event, the trader will begin to doubt his abilities to enter in a winning position, or even to execute his stops. This creates a vicious circle that is very difficult to break out of without the proper help. Let’s say that Trader Joe has learned this high probability Pristine Strategy, but due to his inexperience, or maybe a faulty use of such a strategy in the wrong market conditions, or just as consequence of odds, our trader has had 5 losses in a row. These losses now begin to play with his psyche.
The next time a trading opportunity appears, our trader will typically let it pass by, since he is afraid of having a new loss on top of the prior 5. But as fate would have it, this one happens to work out as he would have planned it. And so does the next one and the next one too. So now the trader has collected enough courage to trade again, and he takes the next entry… and it fails.
This example encompasses several obstacles that the trader has to overcome in order to become consistent. The first one is the understanding that he shouldn’t consider each trade as the end game, but only as a minor part of “a lifetime of trades”. When our trader looks at 3 or 5 losing trades in a row as part of a larger task, they won’t seem so dire. It’s only when he has had a large percentage of his overall trades being losers that he should evaluate the reasons for this. Even the most astute trader will have several losing trades in a row. Also, in order to attain the odds of a given strategy, you must realize that you’ll have losers, but if you become consistent, those losers will be the minority.
If you are a Pristine Graduate even from 15 years ago and are experiencing any of these challenges, please contact us so we can help you get back on track. Once a Pristine student, ALWAYS a Pristine family member. WE are here to help.
I will be doing a FREE ONLINE workshop on Thursday, October 7 at 4:15 P.M. ET about Three Keys to Produce Income. Click below to register.
Would love to see you drop by with any questions you might have or to just gain some great insights into trading the current market.
Interactive Trading Room Moderator
Gap, Intra-Day and Swing Trading Specialist
Instructor and Traders Coach
If you have any questions on this Lesson of the Week (LOW) or any other past edition,
please send to email@example.com as we would be happy to hear from you.