Trading models crumble. Happens often.
Does this shake you?
Please don’t let it. Models are meant to crumble.
Construct a new trading model, instead of mourning over the loss of your current one.
Your belief in your model might be shaken, but you are not stirred, right? Helooooo, Mr. Trader, are you there?
Let’s get this straight – you are not stirred. You stand solid as a rock.
What allows you to do so?
Firstly, your safety net stands. Meaning, nothing’s making your safety net crumble. That’s the first thing you do as a trader – construct a safety net that stands. Your safety net generates steady income and affords your family a comfortable lifestyle. Before that happens, not a single trade is pulled.
Secondly, ever since your safety net has been standing, you have been trading lightly. You’ve been chiselling away at this trading model, but are still a little uncertain about it, and thus, you’ve been going light. It’s recent crumbling has given you losses – which are also light. You are able to swallow such losses easily, since their magnitude is digestible. You’ve been very sensible in not scaling up prematurely.
Then, you’ve stuck to all your trading rules, and this is helping you immensely. Your rules called for a week’s break between two trading models, and you took it. You were not afraid to not work for a week. You didn’t care about what society said. You were confident about yourself, and made your own rules. This week off has kept your personality balanced, and you continue to be a good human being, working for the welfare of society. Your relationship with your family continues to be excellent, despite any losses on the markets.
Yeah, you’re still standing, and pretty comfortably so. Recuperated, and rejuvenated. You are raring to put together a new trading model after the collapse of your old one.
Slowly, you start chiselling again. You watch the market and its movements for a week. Charts are studied. A befitting trading instrument is identified. Trading direction is pinpointed. Trading magnitude is determined. A comfortable entry setup is chosen…and you’re in. Your trade triggers.
After trade upon trade upon trade, your fine-tuned trading model takes shape and yields profits…until it crumbles and gives way to a newer one.
Welcome to the world of trading. You’ll be shaken, many times, but if you stick to a few basics, nothing will be able to knock you off the path.
All the best! 🙂