Last week was a pretty muted week for the EURUSD currency pair that I like to day trade. Muted, except for the day I did not trade. Using the full power of the SST, you managed to pull out 100 pips on the Friday which, if trading one standard lot, banked you $1000.00 minus spread. Not a bad day! To some traders, slogging through some tight range trading leading up to Friday would make it a day they would regret missing.
I am sure there are many traders who stood aside on Friday after being frustrated with the previous four days. Now, they were not great days but the week still ends on a high. That is what the SST does very well…cut your risk and even pull out some profit on tight price action.
There is a belief that traders kick themselves more for missing a winning trade then they do for taking a losing one. I can’t remember where I read that but it makes sense when you look at it from a pure psychological viewpoint. Traders will sit there and think of how their account would have grown. How they would have been right ( you do know that is one of the demons…having to be right ). The fact is, if you are still having pangs of regret when you miss a big winner, you are still at risk of losing it all.
There is always another train coming down the track. Unless there is removal of the tracks, you can be assured that sometime soon, another train will be rolling down the line. Trading is the same. You may miss a move, a winner or even a loser but the fact is, the market will be here tomorrow. Having a “scarcity mentality” does not suit a trader very well. The markets won’t dry up and there will always be money available behind the candles ready to join your account.
This is Sunday night as I am writing this. This chart shows a short trade on the EURUSD (the same pair that left the station on Friday). With a 25 pip risk, I entered this trade with a high probability setup. After triggering in, price toyed with my entry a little and then dropped. At +50 pips, I closed half of the position (Blue up arrow. 2-1 reward to risk) and moved my stop to breakeven. With having a free ride now, I have another target way down the curve.
See, there is no reason to beat yourself up if you miss a trade. In fact, there is no need to curse yourself for taking a loss. Another train is gearing up to head down the line and if you follow a sound trading plan, strategy, psychological handle, there is no reason you can’t be on it.