Sunday, July 04, 2021

My personal trendfollowing "A-ha" moments


Every trader on their own journey will encounter some lessons which are critical to their long-term development and ultimate success.

These will differ from trader to trader, as their own personality, beliefs, strengths, weaknesses and experiences are unique to them.

Below is a list of ten "A-ha!" lessons which I personally have learned from and helped shape my own beliefs about how best for me to trade:
  1. Focusing on win rate is solely for the ego. Far better to concentrate on cutting the losing trades and let the winning trades play themselves out.
  2. Expect the unexpected. Prices can move further than I think, or can reverse against me at any moment.
  3. Trying to act smart instead of letting my own rules dictate what you do is a losing approach. After all, I've spent time and effort developing a coherent approach - why would I go and overrule what my rational, objective self created and has been profitable over the years?
  4. When placing a trade, my primary focus is on how much I am prepared to lose, not on how much I could win. By following your rules, the wins will take care of themselves.
  5. Only price and its movements post-entry determine whether I make a profit or a loss.
  6. Stressing over every tick in the market is futile. And watching what is happening cannot affect anything.
  7. Focus solely on the chart of the individual stock or instrument you are looking to trade. Don't be influenced by other people's opinions or predictions, They are looking at the market through their own prism of beliefs, opinions or methods - not yours.
  8. Accept that my own entry and exit rules have no magical qualities - they are simply a mechanism with which to interact with a market.
  9. As market conditions change, accept that my own method's ability to generate winning trades will change too.
  10. Focusing on myself and my own physical and mental well-being is a key part of trading success. I've spent far more time working on myself in recent years than refining my own rules, and has helped me achieve better performance.

1 comment:

  1. Great insights. Lots of wisdom. Thanks for sharing

    ReplyDelete