-
Good traders and good trading systems have losing streaks and that is just a fact of trading.
-
Overbought and oversold can become more so, bull markets have no long term resistance and bear markets have no long term support.
-
Sometimes losing streaks have nothing to do with how good a system is it is just the market environment at the time was not conducive to the system.
-
Trend followers lose money when markets are range bound or choppy and swing traders lose money during trends and parabolic moves. That is just how it works.
-
It is easiest to make money going with the flow of the market than to try to catch reversals at tops and bottoms.
-
A personal bias can make a trader only see what they want to see and make them fight reality.
-
When you are on the side as the majority it is time to stop and reflect on your trade.
-
The first loss is the best loss, the hoping and the praying usually starts as you find yourself on the wrong side of a trend and the losses get bigger and bigger. Just get out ans start over when the loss is small and you have been proven wrong.
-
Trading is a long term proposition of compounding capital it is a lot of work.
-
Trade small and cut losses fast and your trading capital will always be safe.
-
Limit your draw down to help your account profitable. It is very difficult to trade your way out of a hole.
-
Only trade in those market that you have carefully studied and back tested and have signals with an edge.