What do to when a trade you are in starts to look dodgy

we are a couple of days into this trade now. We are in profit, but it’s not looking great to be honest. It’s going down, but going down choppy, and fighting for every pip.

We have a pretty strong move off the lows, a retest, and a small range inside period with an upside break.

What to do, what to do?

It’s like this. If you start thinking about what to do in the middle of the trade you will be confused as hell. You might get it right, and you might get it wrong, but you WILL get confused. And your next trades will suffer.

Remember it’s not about this trade, but about the next 100 trades, or 1000.

This now has the character of a trade that will either be a total loser or a massive winner. The easiest thing we can do is follow our original trade plan, which is to do nothing.

An interesting experiment is to journal how you feel about the trade. It is inevitable once you are in a trade that your brain starts the process of “hoping it works”. Which is retarded, but most of the edges in trading come from our idiotic thinking so you have to live with it.

Personally I felt the desire to jump out of this trade. I felt a little stupid, since I’ve been talking about this all week, and I felt the desire to make today’s email about something else to save my poor fragile ego.

Without a solid, backtested-to-death ruleset and experience messing this up many times… no doubt I’d be bending and changing things up, thinking about flipping long to short or whatever.

The difference ripples into many aspects of my life. Today I have to go pay some bills and run errands, and I haven’t bench pressed heavy in too long. Without a solid method I’d be anchored to the computer, getting more and more stressed and falling more and more behind in my real life obligations.

But with a system I can leave and trust that things will work out, or not.

It’s a BIG DEAL, this trading with a system thing.

Your system doesn’t have to be mine, but you do have to build one. And most people are going to be happier tweaking one of mine rather than using it exactly like I do.

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