$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!
“Wow! I picked up RENN last week off your watch list Jason at $4.40 - sold today at $5.82.”