MISSING TRADES
One of the best tradersblog is that of Globetrader. He has an interesting post about missing trades. Missing trades is an important factor in trading. It can be due to:
-Physical absence, not being at your screen when the setup occurs. Can be everything,shopping, visit to a doctor, lunch, you name it.
-Hesitation, the most important obstacle of traders, everything is there but you can't pull the trigger. Sometimes you may hesitate, you see the market moving in thye expected direction and you want to jump in.. just to see the markets turn.
-Lack of concentration, trading can be boring at times, the long hours at the screen can exhaust you and you get distracted by other things and you may miss the trade.
Innerworth.com asked: "why are winning days often followed by plateaus and losing streaks? Loss of focus and concentration is a major reason" and that "that winning takes psychological energy. Winning may feel great, but as you are winning, your adrenalin is pumping. After a big, exciting win, your mind and body just want to relax. When you are worn out, you are prone to make poor decisions or trading errors."
You have to reckon this in setting up your system, the more trade entries your system gives, the more trades you may miss.
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