Dear Dan
And I have read her somewhere,I don't remember exactly where,saying ”SCALP YOUR FIRST TRADE IN A A SMALL PROFIT SO THAT YOUR TRADING PSYCHOLOGY REMAIN INTACT AND HEALTHY FOR THE REST OF THE DAY".
Don't these statements looks contradictory,that too from the same person?
And I have read her somewhere,I don't remember exactly where,saying ”SCALP YOUR FIRST TRADE IN A A SMALL PROFIT SO THAT YOUR TRADING PSYCHOLOGY REMAIN INTACT AND HEALTHY FOR THE REST OF THE DAY".
Don't these statements looks contradictory,that too from the same person?
I have read some where something like that, posted from hear, but I do interpret, understand it in an other way and use it in an other way as you critically show.
Let me give an example which is related to sports and I guess most will even feel it in there body's when reading the example.
To warm up our self's for the trading day, you place a so called "Warm up trade". You can do that electronically or by taking your phone and get again in contact with your broker. What ever you prefer.
This trade should give you confidence to be again with the market and not with your private live. I look at it like going swimming. Not in the sense to not know what we do but in the sense you put your feed first in the water to see how hot or warm it is and your whole body knows: Aha, now I go into the water to take a swim. How do I feel? Are I am feeling fit to go?
It just remembers me: Aha I am back again. I am in the water again. My senses are now open and are now absolutely focused on swimming/trading and all the danger which can happen during the cross over of the lake/trade.
That is the first part and that is how I interpret and use what you have posted from hear. Coming to the next part: It is not that I now have already to feel to cross the lake as I did many times before. I am just back and I have the feeling back to the sea/market. Here I can swim a bit to warm up my body / I can take some decent profit on the first trade I placed to be there / in the market.
Moving on with what I posted: After being on the other side of the lake, the danger starts to be lulled into to the feeling to swim back to the other side as quick as possible, as I made the first part/trade successfully.
Hope you recognize the different between just testing the water/scalping your first trade with a small profit, and having been in the water and succeed to cross the lake/ trade with huge profit. Now comes the lull in part.
If the weather now has changed, I may will get in danger in the middle of the lake by an upcoming storm. If I lulled into the feeling as mentioned, then I will not realize the warnings that are given before an upcoming storm and I will jump in the water with the feeling to be back soon on the other side, as I made the first part of it. (Lulled into to the next big trade as I made the first one).
Take care and all the best / DanPickUp
Last edited: