Daily and monthly balance

I understand perfectly that closing every daily or weekly trading session in profit is

difficult.

For this reason, above all if the operativity is not intraday based but on a multiday

base, the balance has to be done monthly or quarterly.

If the quarterly balance is negative you need to ask yourself some questions about

the method or your personal discipline in trading.

If the problem lies in the method, because it is unable to perform in that particular

market phase, obstinacy is the worst path to follow.

If the problem is lack of discipline, I suggest you take a holiday.

These moments, when you lack results and you need a break, are the most difficult

to face because at this precise moment of wanting redemption and recovery, the

trader should stop.

At this point ego and obstinacy come into the game and the trader would like to

continue on his nerves.

Stopping could be seen as fear and the trader does not want this for him- or herself:

fear is unacceptable.

In reality a degree of humility never hurts and a break to reflect could be more

valuable than any other solution.

The backtest simulation, like a demo trading account, is a very good solution to

regain confidence and to keep on training or to test your own method during an

unsuccessful phase of the method itself.

To simulate without money allows you to draw more reasonable conclusions about

the operativity, exactly when the results are not those you were expecting and the

loss of money could invalidate your rationality in analysing the problem.

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