How to trade well and lose your serenity
It does not happen everyday that I get an entry right almost to the tick and the market relentlessly sprints in my favor as has happened with this $SPX500 short.
Granted, the overall market trend is clearly bullish and this is a short-term counter-trend trade. But in an overstretched market, so I felt very comfortable letting this one ride for a downside extension.
But as we can see, Mr. Market had other plans and took me out for break-even. Which of itself is a good trade. Clear entry, market turned around unexpectedly, I got out without financial consequences. But this trade actually cost me big nerve, as I helplessly watched my +20 points evaporate to zero. ZERO!!!
I guess that's what they mean when they tell us that trading is a psychological game. Any tips how to keep calm?
$SPX500 2h chart |
But as we can see, Mr. Market had other plans and took me out for break-even. Which of itself is a good trade. Clear entry, market turned around unexpectedly, I got out without financial consequences. But this trade actually cost me big nerve, as I helplessly watched my +20 points evaporate to zero. ZERO!!!
I guess that's what they mean when they tell us that trading is a psychological game. Any tips how to keep calm?
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