TradingBlog

All traders are on borrowed time not knowing that there is a disaster waiting to happen. Unless a right step is taken to prevent the impending disaster, the situation will be a disaster. The primary goal of trading should be to diffuse the bomb before it explodes causing damages especially in a time based trading. The only way to diffuse the situation is by slowly building a foundation of knowledge and experience.

Newbie traders get lucky and make some quick profits. That money is not utilized properly to buy time and set forth to learn the methods but they jump back for more money. What happens to these kinds of traders is that they will either slowdown to learn or go even pick up pace to recover losses and finally end up dissolving the money from their account. This particularly happens in a time based trading with miracles.

Make the best when miracle hits you:

1. Acknowledge you got lucky, admit it was a gift
2. Put yourself on probation for at least one trading day to get your mindset back to normal
3. Start trading smaller size with tighter filters
4. End the trading day early and on a small profits

Negative reinforcement is an effective constant reminder of what you shouldn’t do and it is easy to implement. Taking a break from the action is only a temporary band-aid. If you haven’t built your foundation of knowledge you are still on borrowed time. If you don’t take the time and make the effort to build a foundation, you will once again find yourself in the chasm.

In a time based trading a strong or weak market is irrelevant to a trader. Sometimes miracles and losses overlap but not always. All you have to do is just preserve your capital and your spirit levels for a long run.