I do think the “2 Unprofitable Trade Rule” is such an important concept. And I thought I would let you know it works for me. Trading does come easier (having about 8 years of membership here, previously knowing nothing) and the better rules have likely been incorporated for success. No matter how good I think I have progressed, I know that an unprofitable trade can happen any day, any time. When two occur in a row, particularly as shorter term trader, it is a fairly clear sign of me of just being wrong. Something was just not being seen properly. The tools I have selected generally work well (well tested and by understanding their limits) – so it pretty much it is always the tool user. Walking away has been the best solution. Following it up with a healthy amount of analysis certainly reveals where the problem was. I did instinctively use the rule again last Thursday. I also later saw the 3rd trade (I was considering) would have salvaged the days previous 2 (in a row) mistakes, but I felt quite at ease walking away with those losses. And, certainly NOT knowing what the 3rd trade would do, I could not accept that risk.
I guess if trading is like anything like baseball and I never take that 3rd strike while at bat, I will never “strike out”. Keeping myself close to that all time high is something you always recommended not to loose sight of. I have not quit, so I am still in the game.
It will keep Them from enticing THE OTHERS (less pro) after loosing 2 in the row .
Hi Dan.
I do think the “2 Unprofitable Trade Rule” is such an important concept. And I thought I would let you know it works for me. Trading does come easier (having about 8 years of membership here, previously knowing nothing) and the better rules have likely been incorporated for success. No matter how good I think I have progressed, I know that an unprofitable trade can happen any day, any time. When two occur in a row, particularly as shorter term trader, it is a fairly clear sign of me of just being wrong. Something was just not being seen properly. The tools I have selected generally work well (well tested and by understanding their limits) – so it pretty much it is always the tool user. Walking away has been the best solution. Following it up with a healthy amount of analysis certainly reveals where the problem was. I did instinctively use the rule again last Thursday. I also later saw the 3rd trade (I was considering) would have salvaged the days previous 2 (in a row) mistakes, but I felt quite at ease walking away with those losses. And, certainly NOT knowing what the 3rd trade would do, I could not accept that risk.
I guess if trading is like anything like baseball and I never take that 3rd strike while at bat, I will never “strike out”. Keeping myself close to that all time high is something you always recommended not to loose sight of. I have not quit, so I am still in the game.
As always, thanks for the focus.
rah