When trades roll back on your positions and you get stopped out in profit but held a more unrealized profit... these hurt the new Trader.
Not financially but rather emotionally. They feel robbed or cheated, and anger is the usual response.
You will never capture large runs in price if you never give the market a chance to run and hold for them.
Sometimes, they simply say... "Not this one..."
Sometimes you can lose all objectivity in the market. You’re so convinced it has to move a certain way, you ignore everything in price that tells you different. This is when the most damage can be done. Be on guard against it!
I am very mindful of capital preservation on Fed days. I lost 1.5M of my own money on a surprise rate cut Jan 3, 2001. 3 yrs prior to that I never dreamed I would have that kind of money let alone lose it.
Fed cut rates by .50 on the first trading day of the year, NQ had the biggest 1 day rally ever, 26% straight up in a matter of minutes. I bid the market up against Susquehanna 100 pts at a time without much or anything trading. This was the big NQ, $100 a pt.
It was important to me that I was in the NQ pit the next day to show everyone I was OK, that I wasn’t beat. The rumors were I lost 10m or more. It was also important to me to show myself I wasn’t beat. My net worth & reputation for integrity & character was such my firm let me trade with a $650K debit as long as I didn’t trade more than 5 lots & if I lost more than 10k I would leave the pit. I made 300K the next 2 days trading 5 lots(remember, this was the big contract not minis or micros). I wrote a big check to make sure to clear my debit & properly fund my account. I went on to have the biggest year of my pit trading career after that.
Remember:
1. Sit on your hands when you don't see edge. Don't force setups. Patience.
2. Step up when you do see edge. No fear. No hesitation. Follow your process. Expect nothing. Expectations create emotions.
3. Trade the market, not your P&L.
4. Always seek improvement.