The Daily Market Forecast... failure teaches

Today’s Lesson: Failure teaches. 

Yesterday’s short trade stopped out only 1.5 points from the day session high. Price then plummeted 45+ points. Instead of a solid payday you paid out. Are you upset? Critical? Sad?

Having a positive attitude about your trading is important. Banish those negative thoughts and blame. Reframe the results of a trade like this one to the positive.

Let’s review the trade plan from yesterday. The Long Level was down at 4619.75. The comment following the long suggestion was “That’s a long way down and unlikely today, but what does that tell you about the short suggested above?”

Did the short level work out? Did the vast distance to the next level almost get filled? Was it a great short entry? Yes, yes, yes.

The fact that you missed the run by a small margin doesn’t negate a well-planned trade. Instead of fostering negative emotions about this result focus on the positive. Learn from the failure. What could you do differently the next time?

One obvious answer is to consider the breakout short from the level. That setup is not in the plan. Maybe the plan needs adjustment. Go back through your results (data capture and screen shots) and find out IF the setup has edge. That’s how a successful trader turns today’s loser into tomorrow’s winner.

Learn how this process works live. Join us every Saturday morning @ 10:00 ET for our weekly LookBack (5) trade review session. Every trade for the week is analyzed. Now open to the public. Meet the team. Ask questions. Register here.

Trade Well,

Mike Siewruk