Why Every Trade is Just One Trade

Why Every Trade is Just One Trade

One sign of a new trader of an inexperienced investor is emotionally reacting too much to a single trade or a single days price movement. Success happens on a longer timeframe, one day or one trade can be random in nature on the short timeframe. Market edges play out over time with a larger sample of trades.

Trading profitability comes from bigger wins than losses not necessarily accuracy of entries. The management of your trade after the entry will determine your profitability. Just getting into a trade does not create profitability the money is made when you get out and lock in profits. Losing trades are normal as no trader has a 100% win rate. All winning systems have drawdowns because markets change.

In trades emotions have to be replaced with taking your signals with proper position sizing, stop losses, trailing stops, and profit targets. Don’t let a single trade or drawdown define you or highjack your emotions. The market cycles through different types of patterns and trends and so will your equity curve.

Every trade is just one trade of the next 100 trades. If you feel any other way you are trading too big or have too much ego involved and want to be right.

You can have a losing day but a profitable week.

You can have a losing week but a profitable month.

You can have a losing month but a profitable year.

You can blow up a small account then build a big one.