DISCIPLINE OVER DOLLAR$
I thought it would be beneficial for other traders to read through these thoughts I was having since it’s
something that we all have in common as traders which is DEALING WITH EMOTIONS.
Now I’m not usually an emotional trader. Nearly 20 years in the trading trenches having lived and traded
through the GFC, Euro debt crisis, COVID, the 2022 bear market etc. have all made my “trading skin”
rough and calloused. (I remember the Tech Wreck but wasn’t quite old enough to be trading back then
but I do know someone who lost their house when the NQ collapsed!)
So why then was I so bothered by my recent MARA trade where I made a $5,000 profit in only a few
days? I saw the setup, took the trade, and got out at my target. I KNEW it had the potential for an
explosive move, I even wrote myself a note to have PAYtience and that I had until May for this trade to
work. I knew it might stop at the 200 EMA but I was also watching the BTC chart which said this was
ready to EXPLODE. Then it did the shortly after I sold.
Doing the calculations of how much MORE I would’ve made started to get to me. I knew better than to
do this but let’s face it we’re all human. I mean it was an additional $15,000-$20,000 but that should’ve
been MY $15,000-$20,000 right? I did everything I was supposed to so why was I unhappy about the
trade?
Was it because it gapped up again? I was going to buy back in when it was above the 200EMA since I
saw the opportunity but that would’ve meant abandoning my rules of buying something when it’s
already above +2ATR. This was just NOT ACCEPTABLE to me. Maybe I was thinking about how I would’ve
been able to roll that trade into SQQQ today which is up nicely on the NQ dumping this (Friday)
afternoon. Maybe it was because I’ve paid for my daughter’s private school fees from the proceeds of a
MARA trade for the last couple of years. Maybe it’s because I remembered that time when I sold my
contracts for a few bucks only to watch it run all the way to $25 a contract before expiry.
So what was it? I had to look past just what was happening in the markets. It was something to do with
ME. I wasn’t feeling like myself. It had been a VERY long week plus I’ve been watching MARA continue to
run from where I sold it at around $9.60 all the way to $12.60. I had 47 of 5/18 $8 calls, 12 of the 4/21
$7.50 calls and if I go back to another trade I recently closed out 108 contracts of the 4/21 $10 when it
was around $7.
Was I upset because the trade I was in wasn’t doing as well as the trade I exited already? At my
target?!!? C’mon man you’re better than that. But I’m also human and had I not been feeling crappy
since Thursday night it might not have bothered me at all. The reality is that we have risk capital, but
also mental and emotional capital. I didn’t even feel well enough to go in to the office on Friday morning
and was feeling tired and sluggish all morning. Sure I feel better now (love those afternoon naps when
working from home) and I got a good night’s sleep on Friday and Saturday nights after just taking some
time for rest and relaxation (see my tweet)
So I might’ve left thousands of dollars on the table but I kept my discipline intact. Discipline over dollars
right? Some of you may be thinking “this guy’s upset he only made $5,000” in a couple of days. I was
thinking the same. I remember a time where I didn’t have enough money to fill gas in my car. Or a time
when I didn’t even have a car. Now here I was being UNHAPPY about making $5,000 in a few days
because I could’ve made 2-3x that amount. Something was off for sure and I had to fix it STAT!
Perhaps I needed a reminder of that summer when I worked the midnight shift at Acklands Grainger
while saving money to pay for school. Maybe the next time I feel this way I should stay awake at night
and count screws and washers from 12am to 8pm. Believe me I raised my hands in thankfulness and
gratitude today.
And so that’s why at the end of it all I find myself being grateful for the opportunity bestowed upon me
to be able to extract money from the markets. This is why my mantra is DISCIPLINE OVER DOLLAR$. I did
everything right. It was a 5/5 trade. I got in at my entry and got out at my target. I didn’t do anything
wrong but that’s the thing with trading. Sometimes you do everything you’re supposed to but still feel
like crap. I didn’t chase, I didn’t try and short it, I just did…..NOTHING. Doing nothing was the best thing
to do. I planned my trade, and traded my plan. I took my profits and the rest is just me acting like a little
bitch over something I had no control over. I didn’t know the future. The only thing I know is that I am
responsible for staying disciplined and had I decided to jump back in to the trade I might’ve made more
MONEY but would’ve abandoned my DISCIPLINE.
Sure I might’ve added a few thousand in profits but that bad habit would’ve cost me even more than
that down the road. I know because I’ve been down that road before. When you let your “Dark
Passenger” take the wheel you always end up going in the wrong direction.
Our goal as traders is NOT to make money. Our goal as traders is to trade as best as we can. That means
planning your trade, trading your plan, and most of all managing your risk. The money is a bi-product.
The discipline brings you the money. Without discipline even if you MAKE money you won’t KEEP it.
I know I’m definitely grateful and appreciative. Making sure your body and mind are in good shape is
imperative to being a successful trader. If you have stuff going on, you’re not in a good mood or are
tired/unfocused then doing NOTHING is the best thing you can do. Go take a break, take a nap, smoke a
cigar, play with your kids, whatever it takes to get yourself out of the funk.
There’s so much more to life than trading and having that balance is super important. The market is
always going to be there. I’ve been around the markets for 20 years. There’s always another trade, and
the market will open again tomorrow.
To recap:
If you followed your plan that’s a win.
The trade might continue to go after you exit. It could’ve also tanked. As I finish editing this on Sunday
evening April 16, 2023 BTC is getting slammed and is back under $30,000. This means that MARA will
quite possibly gap and gap tomorrow. Taking profits at your target is how you become consistent. This is
how you not only survive, but thrive in this business.
You’re never going to catch the absolute bottom or the absolute top.
Keep your emotions in check. It’s too easy to make an emotional trade which can lead you down a dark
path where you start to spiral out of control. Then you’re just a few trades away from blowing up your
account.
Is revenge (trading) a dish best served cold? No it’s a dish better left unsold. Learn to let go. In life and
especially in trading. There’s always another fish in the sea just like there’s always another trade in the
markets.
If you have a roof over your head, more than 1 meal per day, heating, access to a doctor, and access to
clean water you’re living better than BILLIONS of people in the world.
Be thankful for the blessings bestowed upon you and the opportunity to take part in the markets. Not
everyone is as fortunate as we are. Put things into perspective. Time for me to go spend some quality
time with my daughter. We’re finishing building the LEGO Imperial Cruiser tonight. Remember to spread
peace and love. I wish you all peace and blessings and remember DISCIPLINE OVER DOLLAR$
Please see the screenshots below from my trade journal.
Shortly after my entry
When I exited
Slowing down where I expected it to
What it did after I sold
My entry (had a position in 2 accounts)