Man it seems like we talk about this a lot in chat… Trust & Execution. I spend hours everyday outside of the actual trading day looking at charts and trying to find the next good trade. Through time, experience, and hard work…more times than not, my game plan for the day plays out in a way I am prepared for.
I just wanted to write this quick post to share a mistake I made today… It was on AMZN.
Yesterday in my “Hunter’s Market Outlook” post, I stated something along the lines of if 264-265 breaks down, that we will set up for a move to 260-255. Well, 264-265 broke down and then was retested. When it was in the process of being retested I entered AMZN long at 264.03. To make this short, it was only ab 5 minutes later I was stopping out at 262.50. Only lost about 350 but that’s not the point. I’ve lost that many, many times and been totally content with the trade. The point is that I had a plan laid out from the night before and totally ignored it. If a support zone breaks down…it becomes new resistance—- Trading 101.
Wins and losses are part of the game, of course we all know that. But this one really got under my skin, why did I even make the plan to begin with? Enough crying though, I just want to encourage everyone that puts in the time to formulate a plan… to stick to it.
When you stick to your plan and go through the process to formulate a plan. You can’t help but grow as a trader. Right or wrong, you can always learn from each day. In a way we can profit from our losses, but only if we have put ourselves in a position to be able to learn.
We can look at two of our very own for great examples, our most familiar faces in my opinion, stockhaven & cam… both are always prepared everyday with details on all potential plays. Not a coincidence they are two of the most successful.
In closing… let’s all make a better effort to 1. put good prep in and 2. trust & execute our plans. If we don’t do those things we are just throwing darts, probably losing money, and certainly not learning anything from it.
Your Friend & Fellow Trader……HShankle
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