I’ve enjoyed the England rugby these last few Saturdays. Who wouldn’t.
Anyone watching the last couple of games may have noticed a debriefing tool the commentators have to show the game line. The TV tool puts a coloured band across the whole pitch showing a colour for gaining ground and a colour for losing ground.
As in trading, and even as the more powerful winning team, we have to be comfortable with giving ground back. Often all of it. It’s part of the game. We have to trade with broad shoulders.
A weak trader will panic and, to use our metaphor one more time, kick the ball into touch for the silliest of reasons.
A contribution to this, and a mistake, is trading above our ‘I don’t care’ or comfort level. See our new page ‘price per pip’ for our interpretation of how much to trade per pip depending on account size and stop position – which is risk.
We’ve also made changes to our ‘how we trade’ page which we refer daily. Every trader should first write out a defining ‘how to’ page for themselves. We knew this, but learnt the importance of it the harder way.