One Of Rob’s Success Strategies: Ending The Trading Week Strong

Welcome back everyone!  I hope you all are having a great start to your weekend!  Today I am going to talk about a psychology piece.  This is something that really jams people up.

This morning I was making money in the DAX.  That was wonderful and all was right with the world!  There was a trade that I was considering.  However it was late in the session and getting close to the end of the European session.  There is actually a three day weekend this weekend in the European Market because of May Day.  There was a high level of aggressiveness then I would’ve liked.  I was on track and made money earlier in the session.  This has been a phenomenal week from a morning and afternoon sessions.  I have a nice PNL for the week.  I stopped and thought that even if I lost a dollar or Euro, the reality is that it would’ve been a psychological hit.  It would’ve done nothing to my equity curve.

Friday’s I tend to tone down the aggressiveness, especially later in the morning session.  Doing well all week and having a small pull back in the equity curve would’ve bugged me all weekend.  Some people won’t trade Fridays at all.  They end up doing something bad.  They end up staring at their screens all weekend trying to find out why things went so badly.  They just are planning Monday’s return.

Just avoiding to trade on Fridays all together just doesn’t make sense to me.  I came in this morning and made a trade right way.  However as we got closer to the end of the trading room, I saw a trade that would’ve required a lot more aggressiveness.  I ended up saying that I don’t want to throw the week away for a few Euros.  In this particular case I was looking at the DAX.

I hope that this gave you something to think about.  It’s not that we don’t want to trade on Friday.  By the time I get close to when I know I want to knock off for the day, I step away.  People can go from hero to zero very fast.  I hope that all makes sense to you all.

It’s a similar concept for swing traders as well.  Instead of going into the weekend with a big positions, be cautious first.  There is just so much going on in the world right now.  That could increase the risk.

Normally I talk about setups, entries, and strategies for day and swing traders.  This is the other piece of it.  It isn’t just the money we make, it is also about the money we keep.  I started out making money early in the room.  However the nature of the later room trade, I ended up backing off.

I look forward to seeing everyone in the Live Trading Room or in the nightly videos on Monday!

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