Hey traders, how is your trading going? How is life?
Let me ask you one question:
What do you think is the most important aspect of trading to get consistent results?
I guess your answers will vary, based on your experience, trading style, etc.
Hey trader, hope everything is going well with your trading and every other aspect of your life!
Have you thought about a magic formula that will help you trade with consistent results? Or a system? Or an indicator?
I know I have (a few years ago)…
And as much as I’d like to believe that there is a magic formula, indicator or system, the truth is that there isnt one! There never has been one, and there will never be one.
As simple as that.
So please, stop thinking about it…
It’s about time to think about trading as something real. Something that will help you achieve not only your professional goals (because that’s only a means to an end), but your personal goals: spending more time with your family, doing the stuff that you really enjoy, etc.
Sometimes small changes lead to big results…
And this is the kind of those “small” things that can have a great impact in your trading results.
Here is a little story
You go to the mall to buy a T-shirt… Once you get to your favorite store and see a few t-shirts, you decide to take the one in blue…
Once you get to the cashier, you tell him:
I want to take this t-shirt home but I don’t want to pay you for it…
Doesn’t make sense, does it?
That’s exactly what happens when you open a trade and you are not willing to lose.
I few days ago I got an email from a desperate trader, it was something like this:
“It doesn’t matter what indicator I use to trade the market, it always seems to move against me”
Think about it… What would you say to this trader?
My response was something like this:
Look at it this way…
I was about to call it a week… but something came to my mind.
Sometimes putting things into perspective can help you see them from another angle. So I thought about an important question than can help you get better results…
Why do you trade?
Don’t answer because you want to make more money, because that’s not the correct answer.
Actually, you want to make more money because __________________
You need to fill in the line…
The reasons are different from trader to trader, some of them might be:
Do you use trendlines?
I dont… and I dont use them for a simple reason: subjectivity.
Look, trading forex or stocks or any other market has certain degree of subjectivity. But it doesn’t mean that we should use all kind of subjective stuff.
According to wikipedia, subjectivity is a term used to refer to the condition of being subject and the subject’s perspective, experiences, feelings, beliefs, and desires.
And when you think about it, that’s exactly what we get when we use trendlines.
We always tend to draw them at a level that confirm our biases. Let me show you.
One of the reasons traders don’t trade with discipline its because the difficulty of their systems or strategies.
They keep adding a technical indicator for this, this other tool for that, etc. And they end up with a system that is very difficult to follow.
And as you already know, if you don’t trade with discipline you wont be able to achieve consistent results, which is your final goal right?
Well let me tell you something…
What is it with traders that still like to trade the NFP report?
I mean, a few years ago it would seem like the way to go, the market would move 100 or even 200 pips in just a few minutes…
I even knew a few traders that only traded the first friday of the month, that’s when the NFP report is released. But back then the market moved like crazy around those times.
And the strategy was very simple to follow:
A few minutes before the news announcement, traders would set a buy order, say 20 pips above market action, and a sell order 20 pips below t it. And wait for the market to trigger either one of them…
The market would trigger one of them, they’d sit back, relax and see the they account grow by the minute…
But now its different…