So this week was my first full week back after my break, and as such, although I traded well on the whole, I was a little gun shy for sure. Yes I took my signals when they came up without hesitation, but I did close trades before my exit strategy dictated. However, I had somewhat of a refreshed mindset. One which allowed for a shift of perspective which resulted in a little bit more flexibility in my trading. This flexibility allowed me to not be so harsh on myself which left me feeling much better about every session.
When I first started trading I was a scared little bunny who would close a trade no sooner than it had begun to show a profit. I justified this behaviour by telling myself I was 'scalping'. Five or six points was knee trembling territory. Now however, I am a different trader and in fact I find it hard to scalp. I always say to myself 'I am not here to scalp, I am here to trade.' which translates into staying in a trade no matter what happens. But, I came to realise this is not good trading. Good trading is dynamic, like the markets. Yes, you must have a default strategy that you consistently apply until proven wrong. But for example, when a market looks like it is in a trading range, it's okay if I close the trade when it bounces off of previous support, so long as I can objectively justify the decision. If I'm short and the market is coming down to a level that it has bounced off of three times already, I will consider closing it and if I do but then it breaks through, so be it. At the time I closed I had strong evidence to support my decision so that is what I consider, good trading. Once my stop is at break even, of course, I will be much more inclined to let it 'run' but I still cannot and never will allow a trade that is 20+ points in profit come back and stop me out for zero. That in my mind (beliefs) is not good trading. Sure it means my runners will be fewer, but that doesn't matter because I fully accept that. The important thing is that I am not trading with scared money as I was when I first started. Now, I can take a loss and it matters not. In fact I will happily close a trade for a loss if it I think it is not working. I will also, without hesitation, 'Flip the Switch' when I have been stopped out and immediately enter a trade in the opposite direction. I fully embrace the ups and downs.
This week back was refreshing because of this altered state of mindset. This new perspective. It really has brought home to me that as far as I am concerned I have only one job when I trade -
To make points. But, I don't have to make ALL the points.
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