Ugh. I bet every trader has felt this way at some point. Right now, it’s as if the more I study and plan, the shittier I do. No lie.

Sometimes I feel like a hawk looking at my screener… I see a ticker, bring up the chart and I know exactly what I’m going to do and exactly what’s going to happen. Not only do I nail my entry, but I’m green from the get-go. I’m patient, confident and let the trade pan out. I remember that the trend is my friend and I swear I can hear Nate’s voice in my head saying: Sell into strength, lock in some profits. I get out exactly at the right time and I feel like a million bucks. Not only have I made a sweet profit, but I just made back my dumb lost from the day before.

I sit there looking at my P&L with a smile on my face. It’s finally starting to feel like I got this, like the last 6 months of hardcore studying aren’t for nothing. Now I’m searching for my next trade. I look at my screener and the tickers mentioned in chat, I look at charts feeling like a sniper. There it is, my next target.

And then the Stupid kicks in…

I forget everything I have learned so far and chase the trade. Not only am I in now, but I caught the fucking top. The stock starts to pull back on me because; A) The trend wasn’t even there to begin with, I was trying to force it and B) There is no volume. I am now caught in an illiquid stock during the lull… AGAIN.

Bite the bullet or wait it out? We have all done it, there is no denying it. You let it ride out and say fuck it… let’s see what happens. Eventually you realize that you do have to get out. You’re missing out on other plays because you are caught in this mess, so you sell at a loss and start to look for another play. Because after all, you now HAVE to make it back somehow.

And then… You do it again!

I swear I’m starting to have some pretty sweet guns from so much bag holding. Hindsight is 20-20, and it’s easy to tell yourself that from now on, you’ll be disciplined. You are only going to trade perfect setups and you guess what, you do! You slowly build your account and your confidence back up to your starting point, and swear to be a better trader from now on.

And then… the stupid kicks in! AGAIN!

It took me a while to understand the true meaning of “paying your market tuition”. I really hate the feeling of being on the losing side of a trade, but I feel it is a necessary Evil in every trader’s journey. It’s a constant reminder that no matter how good you think you are, the market can humble you real quick.So this week’s lesson… Cockiness is a magnet for reality checks.

Thanks for reading guys

Mick

Twitter @mickdostie