The worst scenario.

During the holidays, I have been spending my time and effort to learn how to be more consistent. To that objective, I read the book 'Trading in the zone' by Mark Douglas. I highly recommend that book to anyone who's trying to be more consistent in their trading.

I have benefit greatly from it and it has changed the way I look at trading and in many ways my own life. I will probably write a summary of that book later in this blog so that I can refer to it myself, so keep a look out.

On being consistent, I asked myself an interesting some time ago: what's the worst possible outcome?

My first answer was of course "a bad analysis which lead to a trade and hit my stop loss... or keep going without hitting my stop loss"

But after some thought I think what is worst in the long run is "a bad analysis which lead to a winning trade". Because now not only you're rewarded for not sticking to your system, your inner programing thinks it can now bend the rules...etc It is a recipe for inconsistentcy. And inconsistentcy just leads to many emotional pain which usually leads to loss.

So stick to your analysis (or your system or your edge) whether the analysis leads to a win or loss, because in the long run if you stick to rigid rules you'll win.