Profit by Skipping Out, 7

This is the seventh of a series of articles started July 10, 2006 (article entitled “The Simplest Way to Increase Profits“) about increasing profits from trading by abstaining from trading when losses are likely to occur.

Yesterday, I talked about toxic people causing you to get disabling emotions which in turn lead to trading losses.

Today, I’ll talk about events involving other people that likely will cause you to be in a frame of mind that cause you to experience trading losses.

Scientific studies show that the following events are among some of the most stressful events in one’s life:

Divorce
Marriage
Birth of a child
Death of a family member
Selling your house
Buying your house
Moving from your old house (or office) into your new house (or office)
Quitting (or getting fired from) a job
Starting a new job
Getting sued
Suing someone else

Your frame of mind under those stressful situations likely will disable you from trading properly. You are likely to do things like failing to enter trades that turn out profitable, staying in losing trades past your budgeted stop loss, failing to protect accrued profits, etc.

Abstaining from trading while these situations are adversely affecting you would be profitable. Recall the formula:

Net Trading Profits = Wins – Losses – Costs

We'll chat again soon ...

Copyright 2006 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
eMail me Comments