Hindsight Capital Is Undefeated

I don’t make money on my couldas, wouldas, or shouldas.

I’ll often fall into the trap of looking at a chart and kicking myself for not taking action at what appears – in hindsight – as an obvious level to have taken some profitable action.

If I had a dollar for every time I uttered: “If only I’d ______”, I’d be typing to you from my palatial estate in the South of France.

Regret is a powerfully negative emotion we must do our best to avoid. It festers like nothing else if left untreated.

Yesterday’s trades have no bearing on today’s setups. Whether I won or lost yesterday does not indicate whether I’ll enter profitable trades today. I’m neither more nor less likely to trade like a genius today.

Every day, every event, every moment is unique. Sure, there will often be similarities to times in the past, but whatever’s happening now will ultimately bear its unique fingerprint.

We can only act upon what is directly in front of us. We have to keep taking our signals as they come. I never know which trade or series of trades will be the ones that make my month or my year in advance. I can only know that after the fact.

The only thing I know with certainty is that if I don’t follow a plan, then I’m lost and will likely be unsatisfied with the end results.

Profits rarely accrue in straight lines. There are usually pullbacks along the way. Sometimes significant ones. How we deal with these drawdowns is what separates the winning traders from the losing traders.

It’s OK – even good! – to learn from my past mistakes. But dwelling on them and regretting the missed opportunities holds me back.

I ain’t got no time for that! I’ve got places to go.

Trade 'em Well,

Sean McLaughlin
Chief Options Strategist
All Star Charts, Technical Analysis Research