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August 31st, 2010 10:35 AM
#1
Trading Rule 14: Move On After Your Trades
Think back to your first relationship--either in junior high, high school, or college. When that relationship ended, you probably thought the world was over. Looking back on it now, however, you realize it wasn't that big of a deal.
This is very similar to trading. Newer traders mope about and think about trades long after they are over. But professionals are used to taking tens of thousands of trades and when they have a trade go against them they forget about it and move on.
As a trader, it is extremely important to learn from your mistakes but not to overly analyze any one given trade. Last year I placed hundreds of trades, and no one specific trade stands out to me any more than any other. Whether I make $50,000 on a trade or I lose $10,000, it is important to accept the outcome of that trade and move on to prepare for the next trade.
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