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Hey everybody. Good morning. Been talking about correlations a lot. I have had many responses on the YouTube videos recently. A lot of you have asked me to continue talking about those correlations, and so, that’s exactly what I’m going to do in today’s video.
Wha. Hello everybody. Welcome back. I’m getting ready for my big fight against the Euro New Zealand dollar. Some of you that follow me on the Twitter, or on the social medias, know that I am in the fight of my life, which is a total exaggeration, is not actually true. I am in the fight of the week, on the Euro New Zealand. I shorted this, because it went out of correlation, and as with everything else, I started a little bit too early. What I am doing is training for the big fight, to get out of this trade a live, and hopefully with some profit. I wanna share with you a little bit about my training regimen, or what I do when I’m in trouble with a trade.Most of this is serious. Just kidding. None of it is.
Number one. I wanna stay calm, and I want to be patient while I’m in this trade. Things like meditation, or soft music by Kenny Loggins, or whatever it is I need to do in order to keep calm, I’m going to need to do that. Now, you could find me when I’m in a bad trade, watching old reruns of Seinfeld, or Bojack Horseman, on Netflix, or something that’s going to keep me patient. One of the biggest issues when in a bad trade, is to remain calm. I know that’s really difficult, but to remain calm, and do things that I enjoy, or that you enjoy, so that you have the state of mind necessary to deal with this bad trade when you get an opportunity.
One of the ways to deal with a bad trade of course, is to close the trade. If the trade hasn’t reached your stop loss yet, and it’s still gone bad, I might even add to that trade. I need to be in the right frame of mind, to add to that trade. The right frame of mind is a positive frame of mind, a happy state of mind, that confident state of mind. I do that by engaging, like I said, in the meditation or in watching shows that make me laugh, or spending time with friends, or going to the movies, or things that are gonna take my mind off of the difficulty and leave me patient enough to wait for that next entry, that might help me get out of that trade.
The next thing that I’m going to do, is a little bit of Kung Fu. Now, what does this mean exactly? Does it means, like straight up Kung Fu? Well, you know, I do a little bit of that, of course, but the other thing that this means, is I have to be a better trader on that next trade. Now, remember, I’m not talking about holding onto a gigantic loss. I’m not talking about holding onto a losing trade that lasts forever, and decimates my trading account, burns my house down, steals my dog, and takes all the light bulbs out of my house. Not talking about that kind of a situation. I’m talking about a situation where the trade hasn’t gone so bad, but it just hasn’t reached my stop loss yet, and it’s negative. I wanna get this thing back to break even, or into positive territory. That’s what I call Kung Fu.
Often times, when you take a trade, you might say to yourself, “Hey self. I wish I could take that trade now. I took it took early. I wish I could take it now. When trades have gone bad, you need to be able to take a trade at a level. You need to be able to bring the big guns. Sometimes I might double the size of my position … Once again, not breaking any money management rules, or losing a significant amount of money. I might need to bring a much larger position, on a higher time frame chart.
Here’s a strategy. Here’s a little Kung Fu. If I took the trade on say, a five minute chart, or a short term trade, I might look for the next trade to help me out, from a 60 minute chart, or from a four hour chart, or even if I want to wait a really long time, from a daily chart. That’s what I call mental trading Kung Fu. If you do those two things, you should be all right. I’m Rob Booker. Thanks for watching the video. If you liked it, you click subscribe, or like, or thumbs up, or hands up, or … I probably just gave a bunch of people vulgar signs in whatever country you live in. I’d love it if you left a comment and let me know what you thought about today’s video, and subscribe to the channel. I will see you in the next one. Back to training.
Have the best day ever.