There will be times when the trader will be thrown off balance by the market. Basically you will be fooled and you may have the sense of confusion or you are in unfamiliar territory. Keep one thing in mind!
When this happens you will be susceptible to changing your rules and typical methods. It is at these times one finds themselves in danger of incurring a bigger draw down than expected.This bewilderment is what may cause one to make additional trading mistakes and make matters worse rather than better.
If you find yourself that things does not seem to make sense to you, back away and wait. The old saying if in doubt, stay out is important. Taking risks when things seem cloudy and unclear is similar to flying a plane in conditions that you are not trained to fly in. John Kennedy Jr. died taking a risk he had no business in taking. He flew his plane in conditions that he was not trained to fly in. The slogan when in doubt stay out would have benefited him and most likely would have saved his and those with him their lives.
It is the benefit of hindsight and seeing what did happen that may force you into trades that you ordinarily would never make.
The particular methods I use will not and does not get me into every trade I am interested in making. What it does do, it helps me stay out of trades I may would have made impulsively when I should not be making those trades.
A good example recently is LULU. MY method did not get me in that trade I was ready to make. If I begin changing my methods too much than it is likely to put me in more trades that I should NOT be making. Be careful to over adjust due to one trade after having the benefit of hindsight.
I spoke on this issue of missing the boat in last nights WPT group consultation. It is unrealistic to think you can catch every move even when it is on your watch list. Trading is a numbers game and not based on any one single trade.
Successful trading hinges mostly on how we manage ourselves and our emotions. It will not be the last trade I miss and it was not certainly the first. There are missed opportunities every month and year. The focus is catching enough of them to achieve ones objectives. Make sure your objectives are realistic.
