Over the past three trading sessions, I traded ProShares UltraPro S&P500 (N:UPRO) on three separate occasions. After taking losses on the first two trades, most traders would have understood if I didn't try trading UPRO again.
But I did.
I took small losses on the first two trades by keeping my stops on each trade very tight knowing that there was a possibility that the market may continue to drop. I also had confidence that this market sell-off on Wednesday and Thursday wasn't likely to last and that a bounce would likely ensue.
But by keeping my stops tight, I kept the emotion out of the trade and was able to position myself for that eventual bounce that the market was primed to provide.
Here's the UPRO trade:
Taking a stock personal is one of worst inhibitors to trading success. Out of it flows, bias, regret, revenge trading, refusing to take a stop, a must win-mentality, etc. These are huge problems for a trader to encounter (most of the time he/she doesn't even realize it), and at the root of it all is the flaw of taking trading personal.
However, when you don't hold a bias against a stock, and you look at it simply from a technical perspective that seeks out tight risk with maximum profit opportunity, trading success over the long-term becomes so much more possible and attainable.
Which stock should you buy in your very next trade?
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