Weekend Update: And That Has Made All The Difference

Earnings season has once again dominated the day-to-day volatility in the market and it has had a pretty significant effect on the short term positions in the Blue Line Prime portfolio below. One of my trading mentors back when I was first getting my trading wings addressed losing streaks with six simple yet strikingly dismissive words:

"It's a drawdown, get over it."

When it comes to psychology, trading is much like sports. Losses happen, but if you don't let them go they will accompany you to every new game. They will screw with your mind, burrow deep into your psyche, and render your trading system impotent at best, a dagger in your account at worst. 

That's why I don't dwell on those trades that are in red, or that carry a minus sign after being closed out. The Dodgers lost 58 games this season, yet they had the best record in major league baseball. The baggage from each one of those losses was left unclaimed. Each new game was a new season onto itself. The result: They are 3 games away from winning it all. 

The heavy lifting in our trading regimen has already been done. Patience and discipline will always trump myopic focus on a bad trade, or a bad week, or even a bad month. I personally take every new system trade, like it or not, with the expectation that it will be my trade of the year. 

And that has made all the difference. 

Market Outlook