Never “hope”: Hope is not a strategy. You need a plan and the ability to execute it with military discipline and precision. If you let hope seep in, you will move your stop loss lose void or loss, or fail to take profit according to plan and let it ride a “little longer.”
Never long resistance: Be patient and wait for resistance to break. You break out or the retest. Longing resistance is an amateur move. Wait for confirmation!
Never short support: Be patient again! Wait for a break. Support is for buying with a tight stop loss, not for selling. Often the urge to sell hits right when something is at support - funny how that works.
Always cut losses: I wrote about this on Tuesday! The key to longevity is cutting losses quickly. You do not need to be right, you need to be profitable! Letting a loser run is a form of hope and is driven by the urge to avoid being wrong. Admit your trade is a failure early and often and move on.
Learn from every loss: Keep a journal! Review your losses and see why they went wrong. Could you have moved your stop a bit lower and reduced your position size? Are you getting stopped out right before price reverses repeatedly? You have to learn from your mistakes to avoid making them again.
