$13,000 In Profits Last Week; 5 Steps I Took To Break A Trading Slump
I played baseball in college and had a tryout with the Atlanta Braves so trust me, I know a thing or two about hitting slumps.
While my Masters is in education, I did take several courses in the psychology of sport and to be quite honest, I find the lessons learned apply to trading as well.
Trading is a very humbling game, even for the world’s best traders. At any given time, there’s countless professional traders going through a slump.
So, what do you do? Ho do you get out of a slump?
Most people actually think slumps are created by a trader doing something wrong with their strategy. However, what usually causes an ongoing slump is how the trader is affected mentally.
Recently I was rattled by my biggest loss ever and I slipped into a slump. Confidence is everything if you plan to stay in the Wall Street game.
This past week I broke out of my slump and went on one of the best tears I’ve had since I started this newsletter hitting over $13,000 in profits.
Here were my mental solutions to get over my big loss and the slump that followed.
1. It only takes one good trade to break out of a slump so I reminded myself a trading streak is just ONE trade away.
2. I narrowed my watch list to names I know and have cashed in on before.
3. Then I spent a fair amount of time visualizing the steps I took to execute those trades successfully.
4. I applied my core strategy scaling into trades at support or after resistance breaks.
5. Stick to your guns! Despite a choppy market, I traded with confidence again giving the trades time to develop.
Bottom line: back to the basics, the same strategy that made me over $100,000 in the last 12 months before my big loss and the ensuing slump!
Anyone who’s been with me for a year will tell you, when I get on a winning streak I tend to get real hot so let me be clear, I’m seeing the ball well right now!
“Thanks for all you've done for my account and education this far. Best decision I've ever made as a trader! Through February, I was up $12,000 and able to pay off our vehicle. That was a great feeling to be sure. So, thanks again.”