How To Stop Trading With Hindsight & Regret

How To Stop Trading With Hindsight & Regret


 

How To Stop Trading With Hindsight & Regret                                                                                                                                                                                                                                                                                                     Two things that many new traders and even experienced traders waste their time on is regret and hindsight. They look at charts and see the past so clearly on them, they should have bought here, they should have sold there. Why didn’t they? The charts look so obvious in hindsight. We really should not waste one second of time or one ounce of energy wishing about what we should have done. The only regret we should really have is that we traded too big, too much, or took an entry that was not part of our trading plan. We may be able to take a lesson from the trade but the only thing we should have been doing at the time was following our trading plan. Taking a preplanned entry and exit based on what we knew would give us the best probability of a winning trade was the right thing to do. When I take a trade I have reasoning behind it, manage the risk of it being a loser, and make the trade inside a larger framework of a trading system. I do not take a trade without accepting the possibility of it being a loser and being okay with that. As we trade, we take the trades we are capable of at that part of our evolution and development as a trader, if it was not the trade that fit us we would never have taken it in the first place, we own it, the losses and the lessons.  In trading the rear view mirror is crystal clear and very deceptive in its clarity we trade by looking out the windshield and it is very foggy and hard to see the road as we go, all we can really do is keep or trading on the road and follow our plan to get to our destination. New traders discover quickly that the past was not as clear cut when it was the present.

How Do Stop Trading With Regret & Hindsight? Start following your trading plan 100% in the present.