Not being one to put out my % of nice winners or wine about my losers I have no problem admitting a mistake. I am human and we all make them, it’s part of trading! If someone tells you different run as fast as you can!

For today’s illustration let’s use my performance on Friday’s SPU short trade. First I correctly identified what I believed to be the overall market tone and direction very early. Second I identified the level for a short term re-trace to get the trade on. Third was the risk identification ( where is the trade totally wrong?) THE STOP. Fourth, after having been filled on a re-trace during the lowest volume time of the day, ” we screwed the pooch”…we were tired, impatient,bored and just got out. This is ok for a day trader but not for a longer time frame trade. The flipper in me ( old day trading habits) reared it’s ugly head! and I walked away instead of letting the market do the work and leaving my stop alone.

Then the fun started. I became the recipient of many e-mails telling me I was a feckless wishy washy Pussy who did not have the stones to stay with the plan. They were right! Obviously those guys all came in short today!

Trust me when I tell you it won’t be the last time! Keep to your game plan and remain consistent.

Wait for the rallies to keep shorting the market. Instruments rarely break from breaks or rally from rallies. You’ll get your opportunities.