Slow day today for us, and we started out with a couple of losing trades. Losing trades are part of the business. As a trader I expect to have losses, and by expecting to have losses I deal with them a lot easier now than I did when I first started. When I first started to trade I didn’t expect to lose, and the losses were much harder to heal from.
We kept our losses in check today because we believed it could be a slow day. Why did we believe it could have been a slow day? It all comes from my preparation. Today, the ES gave us a range bound look on our Beacon Indicators, and the rest of the markets we follow were not in key areas for day trades. No stories or themes from headlines in the overnight trade, as well as coming off a three day weekend.
In my opinion, putting the work in before you trade is the most important aspect to your trading. If you know what to look for, then your decision making is easy once you go live. Preparation builds confidence in your decision making and the losses are much easier to heal from.
Because we kept it tight today on our first 2 trades (CL& ES losses), we were able to stay focused & wait for opportunities in the afternoon trade in ES. Nothing worse than losing your day on a slow morning without having the opportunity to trade the close. Patience & Preparation is essential. Watch this quick video to see how it setup.