Putting the process before profitability…
Listen, nobody’s perfect. Everyone eventually puts on a losing trade; it’s an inevitable fact of life in this business. Today, the guys are going to walk you through a few lessons they’ve learned over the years about maintaining consistent profitability.
A key takeaway should be to “focus on the process.” If you take the time to hone your strategy, and remain disciplined enough to not deviate from it, then you will start to see returns. If you spend the day trading around your p/l, it’s safe to say that you’re doomed to fail. Like John says, “If you focus on the money, you’ll never find it.”
What John is trying to say here is that you should never abandon your process for short-term gains. There are 2 reasons for this. First; there is no such thing as a guaranteed short-term gain. And second; abandoning your strategy will take you out of the game emotionally when you lose.
You should have a reason for being in the market every time you execute a trade. Let me be even clearer on this point; you should have YOUR OWN reason for being in the market every time you execute a trade. It’s your trade, nobody else’s.
Be confident in what your goals are
What kind of goals are you setting? Are you trying to make $1000 a day? $10,000 a month? We’ve found that it’s much more realistic to have a profit idea of where you need to be on a longer time frame.
You’re not going to make money every day, so having an idea of where you need to be, in terms of profits, just to pay the bills each month is a good starting point. Take special note of the story Dan shares about his cable bill. Keep things like that in mind before you let a profit turn into a loss.
Trading is uncertain and the market doesn’t care how smart you think you are. Never forget, the market is infallible. It’s never wrong. The sooner you can accept this hard truth, the better off you will be. Remember this when you are setting up your trading process too, It could save you a lot of money one day!