Yesterday was another dull day. Yes I had a few trades but only one winner out of them. So since I already wrote about the exact same thing yesterday I figured I'd give you a quote from the book Market Wizards that I've been reading. 

Why do most traders lose money?

"Because they would rather lose money than admit they're wrong. What is the ultimate rationalization of a trader in a losing position? "I'll get out when I'm even." Why is getting out even so important? because it protects the ego. I became a winning trader when I was able to say. "To hell with my ego, making money is more important." "
 
Yesterday was a really rough day for me as far as trading goes. Not only did I wake up to having one of the trades I placed last week getting stopped out, but I also lost every day-trade I made.  It was truly one of those days where it felt like I just couldn't do any right. With that being said, its days like yesterday that really allow myself to see how much I've grown as a trader. I know, I know, you're asking yourself how can he say he's grown when he didn't have a single winning trade. Well I grew in the sense of how I deal with the day emotionally.  In the past I would have started second guessing all of my moves and probably destroy the system I use and start over from scratch.   But you know what, this is just part of the game. Losses are part of trading and if I can't deal with that then I don't need to be in this position. I relate a lot of my trading to sports, so I ask myself "does a running back get positive yardage on EVERY run? And if not does the coach take him out or stay with him. Or does a pitcher never walk a batter?  The past is usually a pretty accurate prediction of the future and as long as the track record of my system proved to be positive while I was back-testing it, then the future should be similar.   My most disappointing trading story from the past comes from me having a really bad losing week, quitting on my system, then missing a week (where if I would have stuck to my game plan) I would have doubled my losses from the previous week. OUCH! Days like this are meant to test your dedication and as long as you stay true you will end up on top in the long run. 

@IambusinessTR

 
Today looks like it's going to be a slow day for me with all of the news events taking their toll already, so I figured I'd do my daily update now. 

In my eyes I've had a great start to trading in 2011. I've taken 9 trades total (3 for profit, 4 for loss, and 2 still in progress). However out of those 9 trades, I only consider 2 to be "bad" trades. (Remember bad trades being defined as not following my rules).  Today was the 1st Friday of the month which means the announcement of the scariest news event of them all. The infamous Non-Farm Payrolls.  For those who have never experienced trading during this announcement. Let's just say that the candles look like jumping fans at a concert. (I know bad analogy). Anyway I was secretly hoping not to get any signals during the announcement, and I didn't. But I got one right after, off an ugly looking candle. However, my rules said that I had to enter the trade so I did. And you know what? It ended up being a winning trade within about 20 minutes.  This goes back to my quote: "Follow your rules and the market shall reward you, break your rules and the market will punish you".

I can definantly tell the difference between my trading mindset this year as opposed to last year.  Whenever I was in a trade last year I would wreck my brain thinking about it and checking my charts every minute. This year I feel as if I have more of a calm demeanor to me. I set the trade, set my stops and limits, then walk away and go on with my life. I still check every now and then, but it doesn't keep me up at night anymore. Maybe its confidence, maybe it's the fact that I know whatever happens I can't get out of the trade until it either wins or losses anyway due to my rules. But I'm liking it a lot. So here's to a positive 1st week. 

-We Are TR (Team Royalty) "Progression"


 
Today was a pretty busy trading day for me. In total I entered four trades today. Two using my day trading system and the other two were swing trades (longer-term trades). I consider three out of the four trades to be good trades. Keep in mind that I define a "good" trade as being a trade in which I follow my rules word for word.  Even if the trade loses, it is still considered a good trade. One thing a new trader must realize and accept is that losing is part of the business.  If you are afraid to take losses then you will never be able to take profit. It sounds strange, i know, but trust me I've been through it and there is no way around it.  It's similar to saying that a running back will never be tackled behind the line of scrimmage, or that a pitcher will never walk a batter. It just comes with the game and you have to be able to brush it off and keep doing what you know best.  

Now, the one trade that I consider a bad trade was "bad" because I entered late. Because I entered late I got in after the candle had already moved 11pips in my favor. This was a negative because this meant that I put myself in a position to lose 11 extra pips if the trade were to turn around and go south. And of course it did, and I ended up losing more than originally planned.  The key is "if you follow your rules the market will reward your efforts. But if you break your rules the market will punish you".   

I still have three trades currently in progress so we'll see how then end up over the night. Either way they are good trades so emotionally I am comfortable with a win or a loss.
 
This blog is no different than the daily journal entries that I record after everyone of my trading days. However, I've decided to share it with the world in hopes that another can be influenced as well.  My trading journey wasn't pretty, but I'm finally at the point where I feel comfortable with it.  Am I making money? Well looking at my account balance NO, not yet. But I know how to make money and I know what it takes.  I just have to do it. (lol) Sounds familiar right. The difference is when i say it I MEAN IT.  The two most important keys of successfully trading are having a solid game plan and discipline. When I started fooling (I say fooling around because looking at what I know now, I can not call myself a serious trader) around in this market a year ago I had neither. Six months ago, I had a solid game plan. However when the real money was on the table I would constantly break my rules do to emotional reasons and outside influences. After going through a lot of pain my heart is finally numb (or close to) as far as trading goes.  I took the month of December to develop a system, back test it, and write specific rules for it.  Now I work solely on "if...then..." scenarios.  "If the market does this, Then I will do this", no excuses.   I have also gotten to the point where I am no longer scared to lose money and accept it as part of the business.  Let's just say that I have lost so much already, trying to "get rich quick", that I finally understand that I must "crawl-walk-run-fly".  I compare it to Neo in Matrix 2, or breaking up with a girl friend and getting a second chance. (Well maybe not the latter , as that often didn't work out well for me personally). Either way, 98% of traders fail within their first year of trading an I'm determined not to fall into that category. 

The 3 most important rules of trading are: 1) Don't go broke. 2) Don't go broke. and, 3) Don't go broke. As long as you have an account you have a fighting chance.  

Follow me @IamBusinessTR
Also Follow @Gee_Will and visit www.TeamRoyaltyquotes.weebly.com