Quote from rallymode:
Andy, i dont see missed opportunities as lost profits. How can they be profits when i wasnt even in the trade? Lost profit in my book is when you have profitable position and let it go against you. When you stay out of a trade thats just it. No more no less. There is always reason that i decide to stay out when i do and if it turns out that i was wrong this time around then so be it as i know i was doing the right thing from a long term perspective with regards to the particular trade at hand. None of my trades are random. I know what i just said means nothing to you but i dont know how else to put it.
I do agree that it is very hard to stay away when your gut is telling you to jump in. As humans we like to take risks and many even thrive on them.
What is the hardest part, in my opinion, is recognizing when/what is a relatively undesirable time/trade. Having said that, i cannot suggest a mechanical all-in-one approach that will help you distinguish whats what other than to say that after a period of time using the same stuff over and over you start to get a feel of whats bad and whats not in relative terms of course. I think you get my point.
So it all comes down to still being in the game by the time you develop that sense for lack of a better word. Usually by that time you also have a pretty good sense of direction and know how to manage your risk without much effort. Thats when your moving to +expectancy in your trades and can start varying those risks accordingly. I hope that was helpful.
