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We will be spending hours upon hours backtesting through history to make sure that in the long run, say in at least a hundred trades based on this strategy, we are profitable. Trading is no longer about US it is now about our strategy.
If we make a trade that is not profitable it is not about us. We have to leave us out of the equation. It is about following the plan. We do not beat ourselves up. We do not feel like a loser. Conversely we do no feel like a winner when we make profit. We feel like a winner if we traded our plan. In fact, I want you to stop using the terms winning and losing trades. Instead they are profitable or not profitable.
So here are the four types…
1. Good… Profitable… disciplined…
2. Good… Non-Profitable… disciplined…
3. Bad… Profitable… non-disciplined…
4. Bad… Non-Profitable…. non-disciplined…
Do you get the point?