Wrestling Demons...

This past month has been very tough. Even though we are still about three weeks away from April expiration, I know it will be ugly. Our highlighted trade for the month, the NDX condor, was just one example of the carnage my account suffered. The challenge this poses to me is primarily a mental and emotional one. It only takes one losing month for me to start beating myself up and want to throw in the towel... but here are the real facts:

• For the past (rolling) 12 months, I am still up nearly 30%, even AFTER the current month's loss.
• For the current year, I am up around 15%, even AFTER the current month's loss.
• My win/loss average is still admirable by any measure, and I am a better trader than I've ever been.

I don't show you any of this to gloat. In fact, that's far from my mind right now. In the back of my mind there is a little voice saying, "If you're so hot, how come the market waxed you so bad this month?" Good question... really good question. The logical answer is... stuff happens! It's true. Even the best traders take losses, and even though I hate it, I lose 2-3 months per year. The single biggest challenge I have is not giving up after a month like this. Last year I had two months in a row that were losers, and it crushed my resolve. It took all the courage I could muster to risk another dollar in the market, but I did it and the law of averages played out.

You see, in the end that's what this is all about... probabilities. In the long run they are in my favor, so even though wins and losses happen, in the end I should be a net winner. Part of what keeps a trader going for the long haul is that knowledge. Brett Steenbarger did a great article on his blog recently about trader training. It reminded me of the things that impacted my outlook on trading and the market perceptions that keep us going. That knowledge doesn't come easily, but if you have a well developed system and you know how it works under different market conditions you can stick it out when times get tough.

Good Trading...