Right now, I’m with my daughter at the National Championship Sailing Regatta in Long Beach, CA.
It’s a 3-day regatta, and yesterday was the second racing day.
Every day, the kids sail four 45-min races around a race course.
Everybody starts at the same time – almost like a horse race.
And then they are off to the races
In one of the races, James and Vivian had a bad start and rounded the first mark in 44th place.
By the second mark, they worked their way up to 33.
And they finished the race in 22.
As I watched them sailing, it reminded me a lot about trading, especially when trading “The Wheel Strategy”:
At first, your trade might look very ugly, and it seems that you’re losing.
Same as James and Vivian: At the first mark, it looked like they were not doing very well in this particular race.
But they didn’t give up.
Overall, they are doing VERY well 🙂
And that’s the same with your trades.
Sure, you could give up, close the trade and realize a loss.
But often you just have to give them some time.
Of course, there are no guarantees,
… but if you did your homework and selected “value stocks”, the trade might have a comeback – similar to James and Vivian.
The important thing is:
You must have a plan!
James and Vivian have a plan of what to do when they are in the Top Five.
And they have a plan for what to do when they are in the middle of the fleet.
They also have a plan if they would be at the bottom of the fleet.
When we trade with our Mastermind Members, we show them OUR plan:
- We have a plan for when to take profits
- We have a plan when the trade moves 10% against us.
- We have a plan when the trade moves 20% against us.
- We have a plan when the trade moves 30% against us.
- We have a plan when earnings are coming up
- … etc.
You get the idea.
Many traders don’t have a plan!
And that’s scary!
Because when you don’t have a plan, you trade based on “feelings” and “emotions”.
And that’s the worst “foundation” ever.
So make sure you have a solid trading plan.
If you need help with that, I have something for you – and it’s free.
In the beginning of the year I did a special training on how to create a rock-solid trading plan, and it even comes with a trading plan template.
You can get it here!
Check it out, and take some time today to create or refine your trading plan.
Trust me: THIS is one of the most important things you should do as a trader!
Alright… time to start the last day of racing!
It will be a GREAT day! 🙂