Some may remember this trade. I was targeting TS # 1.3180 on a long on 6E when 6E was coiling up big ahead of FOMC. I liked it long as long as 1.3107 held support. I had to enter a few times before I finally nailed it. The move came on the FOMC announcement and it was FAST. I longed 1.3107 and out 1.3180 on the entire unit in seconds. I did tweet the trade but had some spelling errors LOL. .
The point of this post is after I sold it the 6E continued to run another full point. I got a DM from one of my subscribers asking if I wished that I had held it long. My answer was a resounding NO and I’ll tell you why. Actually what I said was “LOL I try not to think like that - no point and only hurts trading. Always another opportunity :)”. Thought it was worthy of a blog post and here is why:
First of all there is nothing wrong with “wishing” that you had done something different. It is a natural reaction. I “wish” that I had bought HANS in 2003 for .50 and sold it in 2005 for 50 bucks. But as someone once told me: “You can wish in one hand and spit in the other – see which fills up first”.
I try to just think about it logically. It is VERY easy for “I wish” to turn into F*** M* bleep bleep bleep why the F*** did I not hold onto this longer. I just left a F****** point on the table. Then you pull out the calculator and tally up how much $$$ you “lost” by selling too early. Yes I have been there :). Let me tell you – It does NOTHING for you. In fact it hurts you more than you can know. What do you think your chances of being ready for the next trade are if you are angry about “screwing up” the last one? Exactly, not very good. In fact you are more likely to find a way to mess up the next trade and then actually take a loser because your head is not right.
In this case I had an initial target of 1.3180. I longed 1.3107 on the reaction to the FOMC announcement. When it banged 1.3180 seconds later I closed it. I got 73 ticks on a full unit with no scales. What is not to like about this? Plus who knew what it would do next? This was crazy FOMC action. It COULD have reversed the entire move back down and stopped me out. How angry would I have been then if I had not sold it all at my initial target? When the market gives you a gift you take it.
That is why when a trade is closed (win, lose, or draw) you forget it and look for the next one. Of course you try to learn from it. What did I do right? What could I have done better? But you don’t wish that you would have done something else. And you don’t berate yourself for not handling it the way you would have if you could see the chart into the future. No, the better approach is to remain THANKFUL and GRATEFUL for the profit that you did make. Or if it was a loss you are still THANKFUL and GRATEFUL for the lesson you learned and the experience you gained. This is the mindset of a champion.
Related: Qualities of Top Traders # 3 is Gratitude.
2 comments:
Great post... I have recently come to the conclusion that I am a "base hitter." While I may not be a home run hitter, I get on base consistently and that is the important thing. I try not to look back and imagine what could have been, because I could have just as easily lost money rather than made it on any given trade. Understanding who you are and what your capabilities are as a trader is key and allows you to have fewer and fewer of those
F%^^% moments that you are describing :)
Great post. It's so very true. It seems wishful thinking affects messes with your mind and in turn as you said "your next trade"
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