Everyone misses the move occasionally, sometimes it’s because you were being emotional, sometimes didn’t see it and often a combination of them both.
For me, I missed this most recent up move from the bottom. In part, it was due to emotional drama, though I was out of town for two days (Thursday/Friday) this past week which contributed some as well.
The question isn’t whether this is going to happen, it will. The question and the most important thing is how your going to deal with it was it does. For me, the following is my answer.
- I will review my strategy and re-ground myself in the process I’ve created. This means I will not take trades that are “on the line” to trigger, but only trades that clearly align with my strategy I have built.
- I will forget the past. This does not mean I will think it never happened, not that. I mean this in the sense, I will not let it control my future trades. I will not let the past be the determiner of the future. This will only be accomplished through a deep faith in the strength of my process I have created.
- I will remain patient. Sometimes the trades come fast. Other times they’re slow. I will learn to be more patient with trades and continue to grow in faith in my strategy and exercise patience in all circumstances.
- Remember I am a market agnostic (not the spiritual sense of the word), but rather in this sense: Market Agnostic
Overall, the point is, we not only have to have a plan for HOW to trade, but also a plan for “what to do” when the HOW doesn’t work out as planned. A trading plan must include a back-up plan and a fall-back plan to regain footing when they’re lost.