A winning trade
What to do after a plus so that it does not become the start of a problem.
React to a winning trade as a procedure rather than emotionally.
React to a winning trade as a procedure rather than emotionally.
A winning trade returns the amount plus the payout. Technically it is simple. Psychologically it is the most dangerous moment of a trading day.
- Trade
- — $5
- Payout
- — 82%
- Returned
- — $9.10
- Net profit
- — +$4.10
After a plus the brain draws a quick conclusion: “it works”. Then comes the temptation to raise the amount, cut the analysis short, or take the next situation without confirmation, because “I am in the flow”.
The procedure after a win is the same as after a loss: record the result, check it against the scenario, check the limits. No change to the trade size.
Watch yourself after two or three plusses in a row. That is exactly when the trade “for double the amount” appears and takes the whole day's result with it.
Key takeaways
- The payment = the amount + the payout on the amount.
- After a win the procedure is the same as after a loss.
- A run of plusses is the most common prelude to a double-size trade.
A practical example
A day of three trades: +$4.10, +$4.10, and a third at double the size — −$10.
The day totals minus $1.80 on two correct decisions out of three. The arithmetic was spoiled not by analysis but by the change of size.
A note from Leon Mercer Academy
Make it a rule that the trade size changes once a week, calculated from the balance. Inside a day, never.
Lesson 8 of 15 in “YOUR FIRST TRADE”