Crude Oil futures had a big bearish run overnight and started to move sideways into the pit open. I was looking for a continuation down and didn’t get it. 4 losing trades in a row and that’s where I called it quits. I reduced risk on all of them by almost half of my original stop loss which is very small to being with.
I stepped away from the markets and returned later to see the large $2.00 (200 ticks) run to the downside but I didn’t take a single trade. There absolutely was a few valid trades but today it was about sticking to my rules and practicing discipline and patience. Could I of made up my loses on the day? Possibly or I could of just made it worse.
The point of me sitting and watching the trades play out and not doing anything about is excepting my loss, excepting the fact I went 0-4 and told my self no more trades. It was a practice of discipline, rules are rules and they must be followed. Did I want to take trades? Of course I did, deep down I wanted to make back my losses but doing that wouldn’t have helped me at all. I need to understand that losses are not bad what is bad are BIG losses, the ones that make you break the rules or drain your account.
I believe the faster I except that I don’t need to take every trade and small losses are fine is when I will turn the corner and dominate my mental state when it comes to trading.
Watching the market and my trades setup without doing anything about it taught me many lessons. Patience is my biggest killer and today I took a step in the right direction.