As a trader, your job is not to impose your ideas on the market. Your job is to research ideas and see if the market agrees. Losses are part of the process. – FuturesTrader71
Often times we make assumptions in the market using the data at our disposal. I personally feel that probabilities are the best tool available to a trader or investor. I’ve built many probabilities into my trading style, and am fortunate to get a glimpse into The PPT which is a treasure chest of probabilities I can add to my stock picking.
Taking a loss does not mean you’re wrong if the process is right.
Taking to the profile we’re seeing some weakness carrying into the AM globex session. The S&P futures have hit their head three times on 1496 and at 8:25 the level has been rejected in a rather stern manner by the sellers. Should we see trade continue to rotate lower today, I’m looking for buyers to step in at the naked VPOC from 01/24 at 1490.50. I will be looking for buyers to stabilize price here. Should they not show up to the party, I must consider cutting weak names from my portfolio to raise cash.
Agreud. We had to splash around 1500 for a bit to set the trap.
_____
February seasonality wants to put me in industrial metals and miners. I need to pick my spots, but I plan to give them a go.
“Taking a loss does not mean you’re wrong if the process is right.”
I couldn’t agree more. There was a quote from one of the Market Wizards books (I think it was Mark Minervini) that said (I’m paraphrasing here): “being wrong is ok, staying wrong is unacceptable”.
Hell, some of the greatest traders only hit 30-40% of their trades, but they make vastly larger multiples on the wins than the losses.
If you (pl) have an edge, and you stick to your plan, things will probably fall in your favor in the long run.
It’s all about the numb3rs.