As trader’s we always make mistakes during the trading day. If you are a new trader or an experienced trader, mistakes are part of the game and a part of being human. However what separate’s the winners from the losers is how you handle those mistakes and the corrective action you take.
- At the end of the trading day ask yourself, Did i make a mistake ?—Where a mistake means you did not follow your trading rules. If you have no trading rules, then everything you do is a mistake
- If you did not make any mistakes, then pat yourself on the back. If you lost money, but did not make a mistake, Then be confident and do it again.
- If you did make a mistake, then determine the conditions that lead up to the mistake. How might that happen again. What can i do to avoid it again.
- Now determine several effective responses to those conditions. Rehearse yourself performing them because this will make it automatic for you and the next time you face the situation you will be mentally prepared to handle it.
Use this procedure on a daily because.. Why ? Because it works