What I like about ET that you cand find real trader perspective not books writers or educators. Who really trade really now what he look for.
Well exactly the same reason, there are many who leave with a good % and call it a month the fear of losing the gains is what stops them from consistent trading
Well said BlueWaterSailor People like to treat risk like traders and profits like investors, that keeps them far away form their trade plan Unfortunately, a lot of trader call it a month after having a week of good profits Refining your trade plan constantly keep you in steady and a step ahead in the market
It’s true that most of the time when we talk about emotions we only focus on dealing with negative emotions and don't pay much attention to the emotions accompanied with consequent winning streaks. If not checked, such emotions can make a trader overconfident and increase the tendency to take random trades without proper analysis. It’s hard but following your trading plan religiously at such times can be a great help. Trade only if it’s in your plan and don’t let your emotions drive you.
I think I value more that I stick to the plan than potential missed gains because deviating from trading plan turns on "emotional mode" when dumb trading decisions sneaks into your trading and it gets more and more out of control.
When you're in equilibrium, it's important not to take any risks and wait until the price goes beyond your level. This is the time when you can earn a new profit.
That's why profit should be also capped, i.e. when you reach your profit goal you have to stop trading and take stock of your gains to find the reasons of success.