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.
James
1/6/2011

Very insightful Akil. Enjoyed reading your posts.

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Akil
1/7/2011

Thanks James.

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