I think this Dilbert comic strip says a lot about how we look at markets:
Persistence is a key. Always keep looking for new trading ideas.
Knowing when to quit is another key. If you’re wrong, admit it and move on. Managing risk is the name of the game.
But flexibility, in my opinion, is the toughest one. Just because you’re long and get stopped out, doesn’t mean you can’t turn around and go short it if the market tells you it’s a good idea. In fact, my favorite trades are when traditional charting patterns don’t work out the way the book says they should. Turning around and doing the opposite, a lot of times, offers the best risk/reward.
And most importantly, you can’t marry your ideas. If the market proves you wrong, pay attention. No egos remember? I came in a few weeks ago looking to short treasury bonds on a breakdown. And they ripped right in my face. So what?
It’s not about being right, it’s about making money.