Sometimes I ask myself, "Why in the world do I have trading rules if I don't follow them?" Today is one of those days. Today my trading account is down, and virtually all of the loss is due to poor discipline. I have three specific trades on that account for my entire loss today, and these are three that I put on without following my trading rules.
Over time, I plan to share my trading rules with you, but this is really not about rules. The rules are not what worked or didn't work today. Today is a day where the discipline lesson is being taught (yet again). I've been through this lesson more times than I care to count, but obviously I have a lot to learn. So this isn't about the specific rules; it's about following the rules!
Bottom line: We have trading rules for a reason. They are time tested, and carefully developed during cooler times. Now when the heat is on I just have to follow them. When I don't follow them I get hurt. Another lesson from the school of hard knocks.
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