Thinking: A Learning Experience
Right! So here we are, I finally get to share this most recent learning or relearning experience with you all. This is it………..
About 6 weeks ago the DOW pulled back into the buy-zone on the weekly, gave a bullish candle off the old highs, an old resistance level that became support and looked set for the trend to continue to push higher. Check the chart out below.
At this point I would normally go and look at stocks within the US market to trade this likely continuation to the up side. I will search about 550 stocks that I scan in the US to find the best setups based on my rules. This time was no different however I made a crucial error in my trading. The biggest error for me is to think. Yes, you heard that right. When I “think” it has nothing to do with the charts and the technical aspects. It is to do with my inner voice getting in the way. I had a “thought” that the market was set for it’s retracement back to healthy levels on the monthly chart and I would not be fooled by the attractiveness of the charts because I knew better.
So anyway here are 2 trades I had considered but pushed away due to my “thinking”. The blue arrows are when I saw these setups.
I am not saying I would have taken both but even if I had taken just one (it’s likely I would have taken both) then I would have made considerable gains.
Now I wanted to share this with you because I have been trading for years now and consider myself to be a good trader with consistent results yet I still make mistakes. I rarely make a mistake on my risk management or the trade setup itself but I do here still make mistakes, and the mistake I have made on more than one occasion has been to think.
Thinking here cost me not in the way of losing trades, but in the way of opportunity cost which can often be more expensive. Think about it like this:
The longer you don’t trade well, the more you put off learning to trade correctly by investing in training and/or working with a mentor, it is going to cost you down the track. Think of yourself in two to three years from right now, think of the trader you will be if you don’t start trading properly now and think of the trader you will be if you do get the correct structure and guidance you need.
Now go and do it because it is not going to happen without you making the effort.
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Regards,
The TWP Team
www.tradewithprecision.com
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