Andrew’s Note: Before we get to today’s essay, I wanted to make sure you attended Jeff Clark’s private trading workshop… If you haven’t – and want to learn what kind of low-risk stocks Jeff’s targeting next – click right here to watch the session.
A small group of Jeff’s readers collected over $70,000 in profits since last October solely using this strategy… All without needing to put a single penny down upfront.
Make sure you see what he shared right here…
There are a few deadly sins that many traders are guilty of.
These are the fatal mistakes that are sure to blow up a trading account.
Some of these sins include trading without a stop loss, trying to make back some losses by taking an outsized position on the next trade, or refusing to cut a losing trade.
But there’s another deadly sin I want to share with you today…
This deadly sin is what I call “strategy hopping.”
Strategy hopping is when a trader can’t commit to a trading plan or methodology. Instead, they’re always on the lookout for the next best thing.
The truth is there’s no such thing as the Holy Grail of trading. There are a million and one ways to successfully trade the market. What’s important is finding the one way that works best for you.
And whatever way you end up choosing, losing trades are inevitable.
I’ll repeat that one more time… no matter what strategy you choose to call your own, you will lose money trading it.
I’m no exception to this rule. What allows me to stay in the game and consistently keep winning is my commitment to my unique approach to the markets.
Personally, I tend to be a bit early when it comes to entering trades. Sometimes, it takes a few swings at a trade before I really get it right.
A great example of this is when I traded the U.S. dollar and Japanese yen currency pair (USD/JPY) over a near 3-year period before finally scoring big.
Between July 2018 and March 2021, I’d taken three positions on USD/JPY, each time looking for an enormous move to the upside.
My first two trades hit their stop loss, and I exited the trades accordingly.
Let me be clear, it’s never fun to take a loss. That’s exactly why stop loss orders exist. They’re meant to get you out of a bad position as soon as it’s clear you’re wrong.
But I knew that eventually, my analysis of the currency pair would pay off, and the resulting win would more than offset a few losses.
And that’s exactly what happened. I had to be patient, but eventually, I found my next opportunity in March 2021… and that’s when my patience finally paid off.
Here’s a chart of what my first two attempts at buying USD/JPY looked like. You can see in both cases after I bought the market, USD/JPY simply reversed and turned lower, stopping me out.
And here’s what happened on my third attempt…
Although it took a very long time, I finally got the market movement I was originally looking for.
More importantly, this big move more than repaid the losses I took earlier.
It’s never fun to take a loss, but I was very grateful I had my stop loss orders set in place. They prevented me from taking what I call a catastrophic loss, allowing me to live to trade another day.
Capital preservation is what allowed me to stay in the game long enough to take another swing at USD/JPY.
Sticking to my tried and tested strategy gave me the conviction to trust my original analysis.
I could have easily gotten so frustrated with the outcome of my first two trades and abandoned my plan. But if I had done so, it’s likely I would have missed out on the big move that eventually played out how I thought it would.
Free Trading Resources
Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out.
The moral of this story is that if you know your trading plan gives you an edge in the markets, you should stick to it.
If you’re confident with the trading plan you have right now, please share more details… And if you don’t have one, or are unsure of where to start, I’d love to hear from you as well.
Let us know your thoughts – and any questions you have – at [email protected].