Dave writes:
Have you ever felt that your system was SOOOO FREAKIN COOL that you were invincible? And then you say something like this:
"You know what? I did it last time...now I am going to double up on my trade and double my earnings...I am going to knock it out of the park!"
What happens? You double up and then the market doesn't react the way you wanted it to. Suddenly this horrible flushing sound of your account going in the toilet rings in your ears - oh yeah...it sucks.
The problem is that we want to feel the dopamine rush that comes right before an anticipated trade and the sweet euphoria that comes afterwards. So we make any excuse to get it again. That is the inner stunt monkey. Get that monkey off your back. Stick to sound money management.
This is no different from when you have some losing trades. I don't know how many times people have told Rob and myself that they were feeling so bad about their trades that they missed the good ones. Well, that can happen when you make good trades too. You can get too euphoric and think that you can afford to just "knock it out of the park." Don't do it.
Here is what you should do.
1. Stay disciplined. Stick to the backtested plan or system If you don't you are going to get margin called - sorry. Go read Rob's ebook "The Miracle of Discipline". It will help you get back on track.
2. Backtest your strategy even more. It is not practice that makes perfect, it is perfect practice that makes perfect.
3. Take money out of your account as you become profitable, and protect your earnings.
4. Stay humble. Just remember...NOBODY can predict what market is going to do exactly. All you need to do is protect your account and follow your plan.
