Whenever I enter a new trade, whether short or long term, I like to assume it’s not going to be a good turn out.
I tell myself I won’t be getting it at the best price or time. This keeps me humble so I don’t get too excited about the trade in case it doesn’t work.
I like to err on the side of caution and buy a smaller amount, like 10-25 contracts. This way I can get off the sidelines and into the game.
If I’m wrong, I can pull back and only risk a small amount. If I’m not wrong, I can now go in and add more to a winning position.
The most important thing to remember is to be kind to yourself if you’re wrong. We all make the wrong decision from time to time.
Image and article originally from thebrownreport.com. Read the original article here.