Trading The Account

My trading coach says to never make trading entries & exits based upon the trading account. Meaning, if you see you're down -$500 that you make your decision to get out on that or if you're up $738 that you get out unless your trading strategy tells you to do that.

I've had quite a few (probably a lot more than that) positions where I might have been down because it was part way through the strategy, but not through it. Had I waited to trade the strategy correctly, I would've been profitable. Or, it was already profitable and I felt uneasy, so I just took the profits off the table, afterall, you can't go broke taking profits, eh? Well, let's say I was up $245 and got out before my strategy said to. If I had allowed the strategy to go to completion, I would've been up $1389.

Those are just hypothetical examples, but in each case, when I did not follow my trading strategy, it did not pay off. Other times, I could've taken smaller costs, too. Make sure you have a good trading strategy that is proven to be good, and then trade it to the "T".

One of the things when trading futures that helps me is to put masking tape over the account amount as well as the position amount. Yes, I'm applying masking tape to my computer screen so that I do not see this amount. When I see it make radical changes, my emotions just go awry, no matter how controlled I feel.

I am unable to manage my emotions properly if I see those numbers in my account changing so rapidly, so the tape really works for me. Very simple and easy solution. Try it. When I don't see those amounts trading, I'm able to better focusing on truly trading well -- trading my strategy.
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