Don't Let This Go To Your Head
"Make sure you're not made 'Emperor,' avoid that imperial stain. It can happen to you, so keep yourself simple, good, pure, saintly, plain, a friend of justice, god-fearing, gracious, affectionate, and strong for your proper work. Fight to remain the person that philosophy wished to make you. Revere the gods, and look after each other. Life is short — the fruit of this life is a good character and acts for the common good."
— Marcus Aurelius, Meditations
Today's meditation is another great reminder that we need to stay level headed and follow our rules 100% of the time.
How many times have you gone on a nice run of winning trades and said to yourself "I've cracked this trading for sure this time;" only to fall flat on your face with a big loss because you failed to stick to your rules or let a trade run past your exit point, thinking it will turn back in your favour when it started going against you?
This is down to over-confidence, cockiness, feeling unbeatable etc. etc. This makes us start to bend our rules because we want and expect the good run to continue and refuse to accept that we have a losing trade on our hands! The outcome? A big unmanageable loss and then the anger and frustration kicks in as you realise how stupid and cocky you've just been, refusing to take your controlled red like you should have done!
This is why it is absolutely vital that having some success in our trading doesn't change the way we trade; and that is from the selection process and execution of trades, right through to fully managing every trade to completion, the way that we always should do.
So keep focused on why you have been on a good run of winning trades and stick to that process 100% of the time. The occasional trade will go against you and you simply have to manage those trades correctly; otherwise it is one step forward and two steps back!
So stay humble and protect that bank always. Don't let confidence turn into over-confidence which can breed arrogance and cockiness. "Don't let this go to your head!"