Wednesday, May 03, 2006

Stop for the day

4 trades - 4 times Breakeven and a tick
Do you stop for the day or continue trading?
Of course it depends on the number of trades you do on average per day. I do 2 to 8 trades a day, so when I have 4 Breakeven trades in a row, that's more than I do on some days. But it's still no reason to stop trading for the day. What would be a reason is, if more than one of these Breakeven trades ended a 10 to 20 tick winner without me, because I closed the trade too early or if I let one of these trades go down 19 ticks, just missing my stop, it recovered and I just made it.
All this tells me, it's not the market giving me 4 breakeven trades in a row, but me. I'm actually not fit to trade, not reading the market correctly and me having luck.
BUT beware, if you have luck in the market, be grateful and humble, don't press it or the hand who just watched over you, giving you a free lesson in your traders carreer will bite you. And be sure it will not be just a sting, it will really hurt.

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