You've just made a killing in the market, you are high on excitement and ready to do it again. You enter your next trade set-up and you're stopped out. It has dampened your enthusiasm, but you still have most of what you have earned from the market. You re-enter thinking if I got stopped out this way the market must be going the other way, but then you're stopped out again. Looking at your profits that have now dwindled significantly, you're angry (which is exactly how they want you because when you are enraged you don't think and are easy prey) and you begin 'revenge trading' to bring your profits back, but things keep getting worst and you end the day off worst than you started........
How did this happen????????????
You have very clear rules that give you the edge, where did you go wrong???????????
Your error was not in understanding market cycles......Most of the times good trades don't come back to back. There is usually a delay before you get the next really good set-up. Once you make a good profit rest, go work-out, cook or play golf.
Once the market gives you profit, it is like a spoil child that let you play with their ball, they are quick to snatch it back....... In other words as soon as you earn profit, the market looks to snatch it back immediately. Sometimes putting you in the chop for hours, days, weeks and even months. The chop is the hardest when you are a short term day trader. Chops or range bound markets on a larger time frame can be traded quite profitably. The only thing that you have to be careful about in range bound trading on the larger time frames is once price breaks out, it will break out like a sky rocket and you'd better be on the right side of the trade.
The market is in a downtrend, then it gives you a slowdown and a bullish engulfing candle and the right cross on your indicator. Now you're excited and you jump in for the opportunity to sweeten your profits. However the set-up quickly fails.............. Why because you were set-up. The chop and failed signals are the number one trapping places for professionals to set you up.
Antsy traders who are always eager to be in the market are the ones most likely to fall into these trapping pits..... While the market is falling and you're buying, someone who understands the rhythm of the market is shorting all that you are buying and taking your money in the process....
You must stay aware that you are trading the most savvy traders in the world and they are starving everyday, they have lots of luxurious needs that they need your money for.
How do you deal with this?????
WAIT FOR A PROPER TRADE SET-UP
FOLLOW YOUR RULES, YOU DESIGNED THEM TO PROTECT YOU
IF YOU GET A SUPER TRADE, TAKE A REST, BUT IF YOU GET TWO BACK TO BACK DEFINITELY REST
IF YOU ENTER A BAD TRADE CUT IT QUICKLY, IT IS SIMPLY A TRAP (ALWAYS USE WEALTH PROTECTORS)
WAIT AND WATCH FOR A BETTER TRADE SET-UP AND RE-ENTER
AND GIVE YOUR SELF A LITTLE TREAT AND A PAT ON THE BACK WHEN YOU HAVE SUCCESSFULLY NAVIGATED A TRADING DAY
NEVER STOP TRYING !!!
YOU CAN DO THIS(^_^)!