When I first started trading I was 100% focused on my results.
I would sit and watch the screen all day. Watching my various positions move up and down. I would get elated when my positions moved in my favour, and I would become nervous and even upset when they moved against me.
I eventually realised after maybe 1-2 years of doing this that it was
A COMPLETE WASTE OF MY ENERGY
Sitting there, studying your open positions is completely pointless. It adds no value and only hinders you.
Because looking at it all day will only entice you to tinker. We want action. We want big and quick profits. When things seem slow we’ll add new positions to try and make something happen, only to lose more money. When a position moves against you you’ll get an urge to close the trade prematurely, even though it’s only been open a couple of days and your trading a long term strategy.
This is what we do. It’s called being human. But humans and the stockmarket don’t work well together. We are not designed to be successful on the markets. This is why 90% of people lose.
Now, you can execute a good trade and have a bad result. You can al
so execute a bad trade and have a good result.
Where traders often go wrong is they measure their success and failure on one or two good/bad results.
And whilst being profitable is essentially what we want to achieve, what we should be doing as traders is focusing on how good our trades were. A good trade is a trade which fits your strategy. Meets all your entry and exit rules and was taken for all the right reasons.
Think of it this way.
You can make an impulse trade off the back of a tweet you read about Gold going up, and you can make profit from it. But is that an approach you can adopt consistently and be profitable? No. Of course not.
You can also make an informed, educated trade based on your rules and strategy and it makes a loss. But can you be profitable if you continue to trade that way? Of course.
Focusing on the result isn’t always the best approach. I prefer to focus on the quality of my trades rather than the money made. The process over the result.
Execute your trading with good process and the results will take care of themselves over time.