{"id":15931,"date":"2011-12-11T17:41:35","date_gmt":"2011-12-11T22:41:35","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=15931"},"modified":"2011-12-11T11:57:17","modified_gmt":"2011-12-11T16:57:17","slug":"dont-get-burned-by-the-market","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/dont-get-burned-by-the-market","title":{"rendered":"Don&#8217;t get burned by the market"},"content":{"rendered":"<p>Yesterday after an aborted MRI on my back I hit the office to review some of the work on our desk. \u00a0One of the steadiest of trainees had a miserable trading day. \u00a0I am not sure I can remember such a day of red from this new trader. \u00a0In his daily review he wrote:<\/p>\n<blockquote>\n<div id=\"_mcePaste\">Today is probably the worst I feel like I have traded in a while. I really don\u2019t think I did anything<\/div>\n<div id=\"_mcePaste\">right today. I think my main issue in everything I lost in was just not getting in at good prices,<\/div>\n<div id=\"_mcePaste\">which led me to think shorter term about the trade, which made me use bad stops, and after<\/div>\n<div id=\"_mcePaste\">getting stopped out, trying to get back in which led to over trading and more losses.<\/div>\n<\/blockquote>\n<div>His results supported these comments so this was not the case of the overnegative. \u00a0I responded:<\/div>\n<blockquote>\n<div><span style=\"font-family: arial, sans-serif; line-height: normal;\">wow! <\/span><span style=\"font-family: arial, sans-serif; line-height: normal;\">this is a bad day for you.<\/span><span style=\"font-family: arial, sans-serif; line-height: normal;\">ok lets do this<\/span><span style=\"font-family: arial, sans-serif; line-height: normal;\">on monday lower your tier size<\/span><span style=\"font-family: arial, sans-serif; line-height: normal;\">only make your best trades<\/span><span style=\"font-family: arial, sans-serif; line-height: normal;\">think about the plays you are most comfortable it<\/span><span style=\"font-family: arial, sans-serif; line-height: normal;\">make only those trades<\/span><span style=\"font-family: arial, sans-serif; line-height: normal;\">if you put up a positive open make sure you lock that in<\/span><span style=\"font-family: arial, sans-serif; line-height: normal;\">lets just do everything we can to put up a positive day on monday and erase this day from our trading memory<\/span><\/div>\n<\/blockquote>\n<p>A common response from a new trader is to undervalue the significance of such a negative day. \u00a0They undervalue the change required to stop a bad day from becoming a bad run. \u00a0A bad day is just a bad day if you take proactive steps to end it. \u00a0Shrugging it off as just a bad day without change often leads to a trading slump.<\/p>\n<p>It is not the end of the world to have a negative trading day but this was such an\u00a0unusually\u00a0awful day for this trader. \u00a0 No sense in sugar coating the results. \u00a0They were astonishingly terrible for this trader. \u00a0And he needs to take immediate action with the steps and then some that I suggested above. \u00a0It is not so much the losing money it is the red flag that his process is failing him.<\/p>\n<p>If you put your hand on a hot stove that will be the last time you do that. \u00a0You check the stove next time you approach and you never put your hand on it again. \u00a0Why don&#8217;t new traders feel the same sense of urgency with their trading? \u00a0You get burnt by the market and it reaches in to take money from your trading account, then do not let it happen again as best as you can avoid it.<\/p>\n<p>This is not being overly conservative as a trader.  This is called being professional.  Making an adjustment of a professional trader.<\/p>\n<p>Bella<\/p>\n<p><a href=\"http:\/\/www.amazon.com\/gp\/product\/0470529407\/ref=s9_simh_gw_p14_d0_g14_i1?pf_rd_m=ATVPDKIKX0DER&amp;pf_rd_s=center-2&amp;pf_rd_r=0FADCC28AYAW2JHCK017&amp;pf_rd_t=101&amp;pf_rd_p=470938631&amp;pf_rd_i=507846\">One Good Trade<\/a><br \/>\n<a href=\"http:\/\/twitter.com\/smbcapital\"><img decoding=\"async\" src=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" alt=\"\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday after an aborted MRI on my back I hit the office to review some of the work on our desk. \u00a0One of the steadiest of trainees had a miserable trading day. \u00a0I am not sure I can remember such a day of red from this new trader. \u00a0In his daily review he wrote: Today is probably the worst I &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/dont-get-burned-by-the-market\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[30,1832,1193,653,1354,1349],"class_list":["post-15931","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","tag-prop-trading","tag-smb-u","tag-trader-education","tag-trader-training","tag-trading-coach","tag-trading-mentor","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Don&#039;t get burned by the market | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/dont-get-burned-by-the-market\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Don&#039;t get burned by the market | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Yesterday after an aborted MRI on my back I hit the office to review some of the work on our desk. \u00a0One of the steadiest of trainees had a miserable trading day. \u00a0I am not sure I can remember such a day of red from this new trader. \u00a0In his daily review he wrote: Today is probably the worst I ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/dont-get-burned-by-the-market\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2011-12-11T22:41:35+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bella\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" 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