Good morning again from Spain, at least it is morning here. I tell you, jet lag is not a pretty thing. The night before, I slept 12 hours. Last night, if I got two, I would be surprised. I am doggin’ it this morning, I tell you. In any case, Europe is still playing out and I can give you a heads up, if you haven’t had time to look it up. The FTSE, CAC 40, and DAX are all going down over here in Europe. There seems to be some doubts about Greece and its austerity package.
Frankly, I don’t have the energy or time to watch the market today, as I am on a bus to the Costa Brava, the region in northeast Spain where I will be parking myself for three months. In the meantime, here is a question from a reader, and I must say the subject is one that is more common than not.
Greetings Ed!! I’ve enjoyed reading your articles and blog in Trader planet. I’m trading futures now with a set plan and I’ve hit a rough patch as of late. How do you bounce back from setbacks? Also I am trying hard not to let hesitation creep into my trading …
Well, I am glad to hear you have a plan, which points to the first piece of advice I am giving you – unless your plan is flawed, and you know it to be flawed, stick with it. Now, when you hit a “rough patch” such as the one you are in now, it is wise to check your plan for any flaws. Check it out carefully, and if you believe your plan “should be working,” then you now have to figure out why it is not working.
I can go no further than this on analyzing your plan, as only you know the details of it. I will say, however, taking the time to truly analyze your plan will help you deal with your setback. Just the time alone will distract you from any negative thoughts. As well, taking the time to analyze your plan will also do one more important thing for you your troubled state – it will keep you from trading. I have said this before and I will say it again. When times are tough, it is no shame to stop trading. Just stop. Take some time off. Take you wife, girlfriend, or your dog on a vacation. Do something else aside from trading.
The other thing you can do is have a chat with yourself. You need to say that emotions have no place in this rough game we call trading. You need to tell yourself over and over again that what is happening to you happens to every trader on the planet, and I don’t care if that trader is known as the best trader in history. Losing is just part of the game. It happens to everyone. Tell yourself that, and then accept that, and then get on with figuring out what is happening to your plan.
Here is one more tip. When you have collected your emotions and analyzed your plan, get back into the game, but do it slowly. Reduce the scope of your plan. Trade bits and pieces of it, if you can. Go slow to rebuild your confidence, as without confidence, you are going nowhere fast.
Hang in there, and I would say “good luck,” but luck has so little to do with you pulling yourself together and getting back in the game.
Trade in the day – Invest in your life …
