Frame of Mind: Excited to try my newly tweaked old strategy.
I now remember how I got into this rut. This losing streak was caused by a change in strategy to a trending strat which is prone to a lot of smaller losses. I wanted to make a lot in a short span of time. I needed to graduate.
I came to think that I can eventually get there if i would use my old fading strategy and remove the averaging down part and blowing up part. I would now play the strat and adhere to strict rules. Just make the odds work for me.
So I adhered to my plan (well not exactly) and made 8 profitable trades right away before i made my first losing one. I was up $50 before my losing trade came, which was capped at the stop, preventing a blow up.
I feel no pressure to make a lot, nor make back what I lost from the top.
What I did right:
Adhered to the plan. I felt good following my rules.
What I did wrong:
Traded GE, which wasn’t part of the strategy. Sure enough I nearly lost on the trade.