Stick to your trend trading system and follow all of the simple rules for successful trading.
Don’t let a series of losing trades in the short run cause you to lose confidence and deviate from your long-term trading plan. Even the best systems – all systems – have periods of loss or drawdowns.
That’s reality. That is how the markets work and how trend trading systems work. Just as market prices move in trends so will your trading equity. Up trends are followed by side trends and down trends.
These equity swings will test your trend trading discipline. Don’t get optimistic when you’re making money and add to your position size.
This may result in a doubling of your next drawdown. Don’t let your emotions, whether up or down, affect your long-term trend following plan.
Have realistic expectations and stick to your plan.
This discipline is your trading edge and the rewards speak for themselves.
Before trading with the Spread Trading Secrets system, go back and review the “Patterns of Pain” chart. Get a “feel” for the pattern of profits and losses.
This is reality. This is how the markets work and how trend trading works.
If you can’t accept the losses as a part of the process, then trend trading will not work for you. You must be prepared to apply all of the simple rules for successful trading and to evaluate your trading performance based on many trades over a long period of time.
This is the formula for trading success.