Winston Churchill once said:
Success is the ability to go from one failure to another with no loss of enthusiasm.
Very¬†important, because in my trading journey, had I lost trading enthusiasm I would have never discovered order flow trading. ¬†Had I not kept my enthusiasm up, I would of never figured out the true order flow generators in the market. ¬†Now I am not saying that I was enthusiastic every minute of every day, or even every day. ¬†I was not. ¬†But I always held out hope for the better trading day, for the better trading system. ¬†I had trading persistence.
A lot of traders take a loss, or series of losses and then lose enthusiasm. ¬†Some losses can make their stomach turn. ¬†Others may wonder how they will explain their losses to their spouse.
Many traders lose¬†enthusiasm. ¬†They lose confidence. ¬†They lose conviction in their trading system. ¬†They get plugged out of the opportunity flow. ¬†All this money flowing around every day in all these financial instruments, but they remove themselves from the opportunity flow because they don’t have trading persistence. ¬†They don’t have a base level of trading enthusiasm.
Because many times, when the trader chooses to give up or neglect to follow their trading system because of a recent loss or series of losses, well that is the exact time where their trading system would give them the win that they were expecting. ¬†It doesn’t always happen as not everyone has a good trading system.
For example, I had many situations in my early order flow trading days where I would take a loss and then get so sick about it I would unplug myself from the market for days. ¬†Days turn into a week or two. ¬†Eventually, I got back into the market only to discover that If I had traded I would of caught a nice chunk of a 500 pip move sparked by a news release. ¬†For some people a loss can make them feel bad. ¬†For others a missed opportunity can make them feel even worse. ¬†And yet for others, a missed opportunity because of a trading loss affecting your trading enthusiasm is the worst of all.
For example, you expect the market to break out and try to place a trade, but the market stops you out. ¬†You blame the choppy markets and remove yourself from the opportunity flow. ¬†Sometimes that is only one or two days away from the choppy volatility getting ready to turn into explosive volatility and the market breaking out. ¬†Only problem is that you did not have the same trading¬†enthusiasm¬†as you took a loss and removed yourself from the global opportunity flow.
If you constantly suffer discouragement from the markets, and have a bleak outlook on life and the markets, it will make it more difficult to catch the opportunities.
How did I solve that problem you may ask?
Well, the first time you place a nice order flow trade and win 100+ pips, and actually understand why you made money, and what combination of market participants caused your trade to turn into profit, well that is a very beautiful day. ¬†It is a strong start in the order flow journey.
Trading enthusiasm, a certain level of it, needs to be maintained in order for you to have the energy to hunt for the order flow opportunities. ¬†So you can take a loss, understand why you took the loss, tweak if necessary, and then go find the next 200 pip move. ¬†I am not saying you need to be jumping for joy every trading day. ¬†I am saying that you need trading persistence and a certain level of enthusiasm so you can find the opportunities and have the courage and conviction to trade them.