Have you ever felt frustrated, dejected, with a bruised ego, forcing you to question your ability to continue as a self-directed investor or trader?
This is normal, and you should use the opportunity — albeit often uncomfortable — to fine tune your trading strategies to help propel you to a higher level of mastery.
Throughout your trading maturation process, you will undoubtedly experience times when you believe that nothing is working. Every trade stops you out, earnings go against you, etc., despite thorough market preparation and sound entries and management on perfect patterns.
First, stop trading! Digging yourself deeper into a hole and/or taking riskier trades with more at risk to “get even,” will further bruise your emotional and financial stability.
You need to keep a positive frame of mind, and dig back into your mind and trading journal to see what was working successfully when you were in a peak state of trading success.
Review, in greater than normal detail, your prior trades (both winners and losers) and outline which trades have failed, and why.
Do you recognize any patterns? Any trading demons? Any repeated error that resulted in losses that were not a direct result of sound technical analysis and trade management?
Can you attribute the losses to an elevated risk, volatile, non-trending market, or simply too bad trades? You must eliminate mediocre quality trades, and focus on the “best of the best,” when the odds are overwhelmingly stacked your favor.
We also recommend that you contact Master Trader for feedback, or enroll in its Private Mentoring Program (PMP), which, among other things, provides one-on-one mentoring for motivated investors and traders of stocks, options, futures, commodities or currencies in this exact situation. The PMP was recently re-started because of high demand and our desire to help catapult your performance to the level you deserve.
Master Trader founders have a plethora of trading knowledge and experiences, so it is highly unlikely that one of them has not experienced your similar frustrations.
Next, start each day by reviewing your list of “demons.” Trading is hard enough when we focus on quality patterns, executed in accordance with your Trading Plan.
You must eliminate your demons and emotional baggage when trading, including many stupid errors that often result from not being mentally and physically prepared.
Paper trade as an interim starting place. Sure, that is much different than having your capital on the line, but going back to basics to get the needed consistency is required in this case.
Then, when successful, start trading with lighter shares, even 50 share lots or one option contract, until you have at least 3:1 winners/stop outs with a Sharpe Ratio of over 1.8. Trade only the cream of the crop, when the market internals support the entry.
Re-read, and follow all the principles taught by Master Trader regarding successful equity and options trading. If you genuinely follow what we teach, with the passion to succeed, we believe that the odds will be stacked in your favor to succeed at investing and trading.