When The Market Is Going Against You
We like this article for one reason mainly, and it’s because of Debbie’s advice to get up and walk away when the market is going against you. Days like that can wipe out even the best trading account, so don’t let it happen to you! If you are having a bad day, take Debbie’s advice and get up and take a break at a minimum, but if you are wise, you will simply call it a day and come back to fight again the next trading day.
Here is what Debbie Barak had to say in a recent article that was posted at www.ezinearticles.com.
If you are doing day trading, whether it is Forex or futures, invariable you will have those days in which you feel the market is going against you. Whatever you are doing, things go wrong, the market goes in the other direction. You enter with a long position, and the market goes down. You exit this position, enter a position in the other direction, et voila – the market changes directions and you are losing once again.
What should you do?
Actually, the best thing to be doing in such days is to quit for the day. You see, the most important part of trading is psychology. You can have the best teachers, the best indicators, the best platform etc. – the most important part of trading is your head, your reactions, your psychology. The market will go up and down, sometimes in the pace you want it; sometimes it will be too slow or too quick. It is nothing personal about you. You have to face the market as it is. The most important factor in trading is your head, your gut feeling, your patience, your psychology.
When you have one position going against you, that’s natural. Successful trading is always a matter of statistics, and no strategy will be 100% winning. But sometimes one such position leads into another, and you are panicking and are acting with no clear strategy. If you are losing one position after another, most likely you are acting out of panic. No profit is made out of panic.
If you are feeling the market keeps going against you, stop trading. Take a day off, or a week, and analyze what you are doing. Take a long breath, get out of your panic, and try to find out what you were doing wrong, or what can you do in order not to fall into the same mistakes. Each person has his or her own trading style, but you can benefit from speaking with experienced traders and discussing your mistakes. If you have not taken a good trading course, spend the time learning. When you go back to trading, you will have a fresh attitude and be more calm, which is the most important part of trading.
Don’t trade out of panic. Have a good trading plan, and follow it. If things are getting out of hand, it’s time to quit trading and regain confidence.
Join Debbie in her futures trading experience. Read her blog futures trade blog.
So you see, we are not the only ones that suggest having a great trading plan that includes a break when things simply are not going your way. When the market is going against you, don’t keep trading. Instead, take a break or get up and call it a day and you will be richer for having done so.