I can remember being about 6 years old and watching Rocky IV on VHS. Talk about the quintessential 80’s hero story of the underdog making a comeback and defying the odds. I mean you got the USA vs. Russia, and there stands Rocky facing an opponent likes he’s never seen before. Gold right? Pop the popcorn and Que the Eye of the Tiger theme song!
The thing about Rocky and most movies is that the chances are at some point the hero is going to end up in the fight of their life. Then somehow through sheer grit and an unrelenting will they will end up winning in the end. Right? The crowd goes wild, everyone who doubted them will realize they were wrong, and the hero lives happily ever after.
Yeah, not so much in the world of trading….
In the world of trading Rocky gets his butt kicked and loses everything…
It seems most traders have a fundamental flaw when it comes to trading, and it’s the belief that if I just hold on long enough the losing trade will turn into a winner.
The story will be; I was the one that held on and found a way to turn this into profit…
I promise you this type of thinking will kill your trading and empty out your bank account.
Just because you think, feel, or believe that a trade will work when it it contrary to the evidence or your trading system doesn’t make it so.
The market does not play by Hollywood rules
The market does not care what you have sacrificed
The market does not care how much you have on the line, or how much you have invested in the trade…
If you don’t follow your proven system, and execute your exit strategy the way it is designed then the market will hit you harder than any punch from Drago.
You might be relentless, but the market is even more so!
In the world of trading the one thing we have to remember is to cut our losses when our trading system says so.
It’s not about ego, it’s about living to trade another day.
There is a difference between a loss and being a loser.
Cut losses, learn, and move on!
