Night Trading? You'll Need To Be Your Own Coach
You are the broker for your own business. You are solely responsible for the success or failure of your business. You should have the same expectations you would have if your account were at a large brokerage being traded by a professional broker.
If the professional were sick or angry or had come to work right after a fight at home, would you want that person trading your account? Then why would you trade for your own account in that condition?
Trading requires complete detachment. If you are feeling sick, or you are angry about something, or you are rushing to make an appointment, that is not the time to be trading for your business.
Moreover, do not get "married" to any trade. You planned to enter the trade, profit quickly, and then exit. But the trade did not go the way you planned. Do not become emotionally attached to that trade. If it is unprofitable, know when to exit. Better to exit with a small loss than remain married to something unprofitable. What marks the difference between a novice trader and a seasoned professional is the ability of the professional to know when something is not profitable. "You can be Right or you can be Profitable".
The key to successful trading is your ability to LET GO. You must let go of your emotional need to be right. The trade is going against you. But you just can't accept the loss. Now instead of a small loss, you are looking at the trade having to make a sizeable recovery just to get back to where you entered, let alone make you any profit. You might be right that eventually the trade will go in your direction. But meanwhile, there are lots of trades you could have made had your funds not been tied up. Unfortunately you remained married to the original, unprofitable trade.
Your Emotional Mindset accounts for 100% of the success or failure of your trading business. Find this hard to swallow? If 10 people were given the same exact trading formula to follow, there would be 10 completely different financial results. Why? Because some traders would be able to let go of their unprofitable trades and others would not.
If you have a trade that does not go your way, do not take it out on yourself. If you are upset by the mistake, turn off the computer and go take a walk. Do not continue to trade. It is the old "woulda, coulda, shoulda" routine. If only I had done this or that. Forget it. It's history. Move onto the next trade.
Don't try to "Make it back". Ok, you had a losing trade. Don't beat yourself up about it. Learn from your mistake. THANK the market for the education and move on. Seasoned traders have all made mistakes and continue to make mistakes virtually on a daily basis. The one common denominator they all have is a willingness to learn from their mistakes.
The last point about being your own coach is, careful of being overconfident or "cocky". You had 10 profitable days in a row and now you are feeling as if you could never lose. Being cocky could lend itself to overzealous trading and a failure to follow your trading plan. Again, stick with your trading strategy. It is successful for you. Don't introduce new (and untested) techniques. Trade what you were profitable with again and again.
Be a good coach. It is even ok to pat yourself on the back when you do well!
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