Two words or phrases that are 1. rarely talked about and 2. hard to feel in this business. I, fortunately, feel very in-sync and as a result I am gaining confidence with my trading. What is the cause of this you may ask??
Since my declaration in “A Quick Note…” on July 12th, I have implemented just about every one of those points and stuck to them with a military like discipline. As I feel myself straying, I will go back and re-read it. I suggest you make your own plan, or copy mine if you like…stick to it, find out what works and what doesn’t and slowly watch your system change into a profitable tool.
Consistency isn’t just from profit, you have to develop consistency in your losses too. When your system starts to be consistently in the red, then redevelop your system, don’t jump from idea to idea, but break it down and FIX the problem. Keep that consistency IN your plan and in FOLLOWING your plan.
For the past two weeks I have been able to meet my weekly goals by Thursday (which is great, I HATE trading on Fridays) and this week I have meet my goal this morning. I am going to keep trading this week, but I am cutting my normal trade sizes in half to decrease the probability of giving it all back. Everything from here on forward is extra, so I am not worried about killing it and risking what I have gained.
One thing or phrase that I have developed and helped my trading is this, “Know what the crowd is doing, don’t blindly do what the crowd is doing…” To aid me, I watch CNBC, I said I WATCH – I really don’t listen to much because most of them on there are bumbling idiots (I’d like to see a portfolio that they have managed). Most of the time I look to take the opposite position of what they recommend, it’s that bad. This has helped me stay In-Sync with the world’s markets and understanding the correlations between them.
In-sync, Confident, and Consistent. Three pieces to this seemingly 10000 piece puzzle.