One more week in the down. Spring Break has been a blast, even though I have been working every day. The overall market finished down which is healthy overall long term. We have been in a bull run-up since the past decade, we are due for a pullback. I don't know where the market will go, and honestly, I don't give a shit. The same old patterns will still be here. I will adopt in pursuit of success. This past week he was a clear trend change. This blog post will be short in commentary, but make sure to check out the links below for recaps.
One main thing I have noticed in my trading has been risking. I have stressed urgently in the past, that is is essential to predefined the risk of every single trade, before you execute it. As doing so will better prepare you for any possible outcome. In addition, being patient as long as your risk level holds is essential in trading. Meaning that your risk should be what dollar amount your willing to lose. Understand that everyone will have a different risk threshold because we each have unique personalities. If you find yourself cutting your loss before your risk is hit, there are likely two problems. One of your risk levels is too tight, I often use the higher risk on a chart based on the Technical indicators. Secondly, you're simply risking too much on a single trade. Remember that no one trade will make you, but one trade can break you. This past week was a victim of this situation. Predefined risk of every trade is second nature to me, but being patient as long as my risk holds is still a work in progress. There were numerous trades this week that I would have profited well on if I simply did not exit the trade. I exited simply because I was afraid too loose which is the wrong Mindset. Loosing is apart of the game. Learning from every loss is a great way to understand your weakness and strengths. Remember that your risk is based on how much your willing to lose. There is not a reason to be afraid if your risk is hit, assuming that you follow rule number one, CUT LOSSES QUICKLY. If you ever feel uncomfortable in a stock I encourage you too simply get out. Never risk disaster.
This upcoming week I will be focusing on being patient as long as my risk level holds. In addition, only risking what I am willing to lose. Meaning that I will not be afraid to simply exit the trade when it exceeds my risk threshold. I will let the trades come to me. I see you next week.
Update: 238 Days. 5,712 Hours. It is amazing how fast time flies by. I still remember the day I began my journey towards the summit of the mountain. It feels like an eternity until I will reach it but I envision it every day. It has been tough to admit, there have been really depressing moments. I must remind myself that if it were easy everyone would do it. I know that I think differently from the rest. I just never envisioned myself working for anyone besides myself and for those I love. I never thought trading would be my Obsession. I thank the Lord for showing me this game at a very young age. As I write this I am 19. And I see what I am trying to do every day. I want it, but I true success and lasting success takes time. Everything I do will be passed down to my kids and family. There is one question that comes to mind. Will it be Worth it? And my response is... There's only one way to find out. Live.Love.Matter. Spring Break has been a blast. I don't know where I will be one year from today, but I know it will be worth it.