Education Resource

Putting Yourself on the Bench

Master Instructor Blog

blog-benchedFor many years I have had to take the role of being my own coach as a trader, praising myself for following my rules, benching myself when I don’t, and objectively analyzing my moods & emotions to determine if I am fit to trade that day. Forcing yourself to sit out a day or two is not that tough when your on a losing streak, sitting out during a winning streak however is much harder! This first 2 weeks of October have been one of my best 2 week trading periods in the last 16 years. Using the core principles taught at Online Trading Academy, I have managed to increase my Spot Forex account 75%. During that period, I have also averaged 76.23% winning trades, 23.68% losing trades. That by itself does not insure you are making money! However, that combined with an average winning trade of $309.15, and average loss of $64.82, now were cooking with fire! that is a Reward/Risk ration of 5:1 When your on a streak like this, its hard to tell yourself to sit out a day, to take a breather as momentum is clearly on my side at the moment.

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After being poisoned with Bleach in the Air Conditioning in the studio, I have been feeling a little sluggish, and not 100%. This morning, I smashed my foot on my dresser getting up, slipped in the shower, and hit EVERY (11 in total!) red light on the way to the Studio. As I was driving, I started to realize that I am clearly not my normal self today! If I had to estimate, I’d say that I was running at about 70% full strength.

Back in the late 90′s, I would never even consider how I was feeling, or mood when I went into the trading floor. In hindsight, the days that I was not 100% were significant losing days. Having learned from my past, I made a firm decision: I will absolutely NOT trade today. No stocks, No Futures, No Forex! Nada! This is an extremely difficult action for me as I’m on a great streak right now.

We have all had those days. The ones where all we want to do is crawl back into bad, pull the blinds and go back to sleep as nothing seems to be going our way. Today is that day for me. I’m benched. The market will not miss me, the world will be there tomorrow. Hopefully i’ll be back to 100% soon.

The lesson here is, you don’t have to trade everyday. You need to recognize when things are not right, or out of sync. Failure to realize these personal details could result in significant losses.

Disclaimer
This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results. Reprints allowed for private reading only, for all else, please obtain permission.