Just putting it here instead of tucked away so I remember to read it every now and then.

 --

while the tape grinds boringly....

some thoughts on why sometimes we are our worst enemies in trading....and how to improve that....You want to become a consistent winning trader?

Well if you really mean it, you HAVE to look at yourself in the mirror and your results and create a consistent approach. You can not live all-in to all-in trades...no way no how....

We watch a chart, a count, a consensus build or an edge that is thought to be amazing....that the setup can not be wrong, that it will be a huge hit....so the greed inside has traders put out way too large of a position to their bank roll....but mentally its no big deal because it is surely going to be a winner....so we gamble.....and in the worst case, yes saying worst case...it hits...its a winner....

...now that feeds a trader's subconscious that they where correct in risking way too much on 1 end result.  So it gets positively reinforced to do it the next time...or when a right size trade goes against you to press it and make it bigger, and bigger and bigger...eventually we know what happens...we cant win every trade...so the inevitable blow up happens or huge draw-down...

I did this for years...seriously years...and because my analysis was actually better than 50 or 60% i had some enormous hits to the upside...and like i stated above, the losing streaks came and washed out every dollar of profits...every time...sometimes it would take longer, sometimes shorter...but the result every time was a blow out...my instincts as a trader are 100% taught to myself by myself based on my reflections of exceptional trading leading to astonishingly bad trading and the ultimate poorhouse....

it took me years to learn from my mistakes.  and the Trading game-plan and rules that I've built through my failures are not for no reason, they where built because I know without them what the inevitable entails...we all do who've done it.

I stated many many times that this is a bull market, and one should not short it recklessly because it isnt the time and the place and the setup for it probability wise.  That in bull markets you do not short a disproportionate amount vs looking for long setups.  This rule was created for exactly what is happening right now.  I took shorts as posted in the 2380's 2 weeks back...I'm getting crushed on those...yes crushed...im transparent....i dont post just winners....if one can't accept in front of peers and colleagues their losers and draw-downs, they are not going to get better or realize that in this gig, winners are great...

but the longevity lies in how losers are dealt with...

I posted again my short positions and swing trade in the 2380's....both on ES and spy puts...well the puts evaporated really....on the shorter time-frames, so no reason to bail, and the out June weeks are down big....but the most important trade i want to point out is the ES short....I stated that I was risking 16 points for +58-114....well that got stopped at the 16 pin loss...so what?

big deal...i just posted like 3 back to back over the past 6 months where we took 50+ and 125+ on big swings....so if I used proper size (yes i did), i did not go all in...it was same size as the others...pre-determined....all I did was draw-down 16 points of prior profits....it didnt bankrupt my account...it didnt inflict irrevocable damage...did it sting...ya nobody wants to lose that....but i did...and im posting the significance for all to see the importance of proper risk management.

We can not afford to lose more in our losing trades than we make in our winning trades.  Its a cardinal sin in trading, and one that over time wipes us out.  WE must adhere to a size that allows us to make the next trade.  

Another very important distinguishing POINT:  I stated numerous times, that a short trade by me would be Significantly Smaller in size than a Bull Trade or Long trade.  That a bull market requires different rules on the short side.  I was trading against the grain, short in a bull tape....that means i have to be precise, more precise than trading the short side in a bear market.  So i knew it was a lower probability trade, but the skew was absolutely justifiable.  So i took the trade.

 I didnt put 4 times my long size in this trade because it looked so great and couldnt lose...no i put half my long size in the trade as posted...so i lost 50% less than i would have on the long side...again a huge downstream reason i as a trader can stay in this game....

Trading is tough, brutally tough.  So why not do our best to put the probabilities in our favor of succeeding.  Seems simple, and quite frankly when you;ve done it for awhile it becomes easier, never simple, but easier to adhere to the blueprint.  I always battle with the gambler in me.  I've just created a framework where the gambler can play, but is not allowed to ever spiral....

If you disproportionately screwed up the past few weeks or months....do an internal audit.  Time yourself out.  Figure out what went wrong.  Do something about it.  Go hit some singles again....dont try to hit a grand slam only to blow yourself up worse than you already have....we all take drawdowns...we ALL DO...anyone whom suggests they don't is lying, and their ego is bigger than their accounts I assure you of that.

- Harry Dunn