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Staying Positive

Posted on February 19, 2009 by Adam

It’s been a tough week for me. The market’s been beating me up since it opened on Tuesday. Both my longs and my shorts are underperforming. This happens from time to time and it sucks.

It happens to the best of us, and if you can’t take the pain you probably won’t last in the long run. It’s important to remember that even when you’re getting crushed, you still need to remember the fundamentals. That means keeping your book balanced, and managing risk appropriately.

I don’t want to see any of you get forced out of the game by blowing up your accounts. It’s never happened to me because I understand risk management. I cut my losses when I’m wrong and I always trade objectively. In addition, I never risk more than 1% of my account on any one trade. That means I can be wrong on 100 consecutive trades before I’m out of capital. I don’t see that happening any time soon.

If you’ve ever felt down and out, keep your head up and don’t lose focus. Letting your guard down when you’re vulnerable is the worst thing you can do. We all hit slumps, but with diligence, you can be profitable in the long run.

Also, remember to sign up for my Bullish Percent Tutorial next week if you haven’t done so already. It should be good fun.

Happy Trading!

Adam