BROKEN RULES equated to BROKEN CONFIDENCE
I believe that it is vitally important that we visit the topic of respecting the rules that each of you have for your trading systems.
During market volatility, it is critical that you follow the rules you set.
Let me give you an example, during my class we begin with each student designing a trading system that will work for them. Within that structure there are rules such as entry , bar action , time frames, exits so on and so forth. If you enter a trade, I focus that each must stick to the rules. If the exit is to exit within a certain profit target , then you must exit at that target. If your structure for your trading system is to trail you trade with a trailing stop loss, then trail it with a trailing stop loss. My own experience with trading, as well as with numerous students, I have found, is that if you violate your rules once you will do it again. We are again having confidence in our self as a trader that has designed a trade with high probabilities of success. We have designed a high probability trade that give us a profit from the trade that we have entered into. If you decide that the market will give you more and you begin to adjust your trades as the market is moving, you may gain on that single trade, however subconsciously you have violated your own rules and structure. This will subconsciously begin to chip away at the confidence that you have gained by developing your high probability trade. This is important, if you have violated your own rules and structure, you have subconsciously began to chip away at the confidence that you have gained as a trader.
One of the most underdeveloped trading skills that a trader needs is confidence. You have to strengthen and build up your confidence in one self to trade successfully. If you begin to violate yourself, it is logged into your subconscious and your next trade, or maybe the third trade you will again begin to adjust your trade mid stream. The result is once again simply stated, you have begun to chip away at your confidence. A trader without confidence is a man or woman living life without an essential part of him or herself.
Market volatility is a time where we need to develop a healthy level of mental fitness. Stick to your rules, stick to your high probability trades. Stick to your structure and your confidence will continue to be built.
Best of Success !