Own the mistake
Where to look when a trade goes wrong, and what blaming the market or the method leads to.
Trades go wrong. That is normal and it never stops.
What decides whether you improve is what you decide caused it.
The cause is your reading
When a trade goes against you, the honest answer almost every time is that you read the market wrong.
You saw something on the chart, judged what would follow, and the judgement was wrong. That is the whole event.
The mistake is in your reading, and that is the only place a fix can go.
The market did nothing to you
The market did not target your position. It has no idea you are there.
It kept doing what it was doing, and your expectation of it did not match. Blaming it feels better for an hour and teaches you nothing.
A market cannot make a mistake, so it cannot be the one at fault.
Blaming the method starts the hopping
Decide instead that the method failed, and there is only one available fix: get a different method.
So you find one. It loses too, because every method loses sometimes. So you find another. A year passes and you have collected methods rather than learned one.
Strategy hopping is what blame turns into.
The honest question
After a losing trade, one question does the work. What did I read wrong?
Answer that and you have something specific to change. Answer anything else and you have nothing.
One honest question beats a new strategy.
Key terms
- strategy hopping
switching method after every loss.