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How to Break Through in Trading

  #14 (permalink)

San Antonio Texas
Trading Experience: Beginner
Platform: Ninjatrader Thinkorswim
Favorite Futures: ES, CL, GC, and ZS
Posts: 98 since Nov 2016
Thanks: 47 given, 37 received

I was recently right were you are. I can tell you a few of the things that helped me. As many have mentioned you need to know your expectancy. You also need to know your risk to reward. But in my opinion you must first clearly define your trade. I mean crystal clear and laser dialed. So much so that I could pick up your trading plan and understand how you trade.

Then create rules for money management. If you know thorough expectancy and knowing your risk to reward that your system has a normal draw down of X and you go outside of that then something is off.

Lastly and this was for me the most important part. Journaling. Not in a book. I have sheets in a binder that I got from one of the MANY courses I jumped around to. They are easy to read at a glance and two boxes are most important. Notes, where I write down how I felt. Was I nervous, was I calm. And the other is mistakes. What is a mistake? A mistake is ANYTHING outside of those laser defined rules. Once a week I started comparing my actual P/L and what my P/L would have zero mistakes. I found without mistakes I was a profitable trader. I then looked to see which was the mistake I made the most and worked on correcting that one thing. Just that one. I still go rouge. I did it this week. I either gave back most of the profit I had on a day after making clean trades then going back in till I gave it back or I traded outside my rules and pulled myself in and got back to breakeven with clean trades. I had to sit down and ask myself do I have the discipline to do this. Because knowing your expectancy and risk to reward doesn't matter if you and your psychology get in the way. Consider reading Trading In The Zone.

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