ignore your trading goal

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Ignore Your Trading Goal http://www.netpicks.com/ignore-trading-goal/

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Page 1: Ignore Your Trading Goal

Ignore Your Trading Goal http://www.netpicks.com/ignore-trading-goal/

Page 2: Ignore Your Trading Goal

In the trading world, it's usually not the actual activity of placing a trade that is the

problem. That's the easy part.

Page 3: Ignore Your Trading Goal

The hard part is when you are on the path to placing trades that have an

actual edge and you can do it consistently keeping in mind risk parameters and in line with your

ultimate trading goal.

Page 4: Ignore Your Trading Goal

Every day, someone new to this business opens up a trading account and begins the long and slow path to

profits.

Page 5: Ignore Your Trading Goal

Perhaps they've had coaching, bought a trading system or had some other type of exposure to this business.

Page 6: Ignore Your Trading Goal

They envision the success their "mentor", trading forum participants, Instagram user, and anybody else that places a trade has had and they seek

to emulate.

Page 7: Ignore Your Trading Goal

It seems easy. Many people have told them that trading is "easy" and may have shown them the results of their

trading success.

Page 8: Ignore Your Trading Goal

If you were to scan Twitter or Instagram, there is no shortage of

those claiming thousands of dollars per day in winnings. There's no

shortage of those posting trips, cars, dinners, and anything else that shows the world the success they have had.

Page 9: Ignore Your Trading Goal

Armed with that vision, new traders trot down the path and every turn offers them a different challenge such as: Stopped out right after trade entry/revenge trades Risked too much on the loser Risked too little on the winner

Page 10: Ignore Your Trading Goal

This is not the results they have pictured vividly in their minds. The

actual reality of the goal looks nothing like what drove them to attempt the

challenge in the first place.

Page 11: Ignore Your Trading Goal

I recently read a great blog post by James Clear that had prompted me to write this

blog post in relation to trading.

It's not a new topic for me but it never gets old!

http://jamesclear.com/treasure-hunt

Page 12: Ignore Your Trading Goal

James says to "set your compass and start walking" towards your treasure. Commit to the goal and then "release

the desire to achieve a particular outcome and focus instead on the slow

march forward".

Page 13: Ignore Your Trading Goal

Let's be honest with ourselves…most people never actually commit to much in their lives. In terms of trading, what

does that mean?

Page 14: Ignore Your Trading Goal

It means seeing your "treasure" as a consistently profitable trader and then to tackle each problem/celebrate each

success that you find on the path.

Page 15: Ignore Your Trading Goal

Let's assume you have purchased a trading system and after studying the material, you put it into practice. Your path may include back testing, forward

testing, and learning to execute without hesitation. During your

travels on the road to consistently profitable, you encounter:

Page 16: Ignore Your Trading Goal

1. Revenge trading. After taking a loss in the random series of

wins/losses, you toss the rules out the window and jump into a big green

candle. Your "treasure" remains the same however you seek out ways you

may eliminate this type of rule breaking.

Page 17: Ignore Your Trading Goal

Perhaps after a series of day-trading losses, you get away from your trading

desk and head outside. You do anything to interrupt your current state.the one that prompts you to

revenge trade.

Page 18: Ignore Your Trading Goal

2. Twist on your trading method. You've been reading trading forums

(never a good idea) and have seen the "power" of using X moving average for

confirmation of a move.

Page 19: Ignore Your Trading Goal

The moment you use this average, you are no longer trading the system

you have tested and proven to yourself actually has an edge.

Page 20: Ignore Your Trading Goal

You remind yourself that there is no secret in trading and that you have done some in depth work on your

trading system and the numbers show it's a good system. You commit to

staying away from forums and remove yourself from the mailing lists of the

obvious marketers.

Page 21: Ignore Your Trading Goal

3. You ignored risk parameters. During a string of wins, you decided to increase your risk % but the next trade was a loser. You erased some healthy profits from previous winners because you forgot there is no guarantee that

the next trade will be a winner.

Page 22: Ignore Your Trading Goal

Realizing risk controls are paramount to ensure you stay solvent enough to reach your goal, you recommit to a

steady risk % regardless of your thoughts, win streak, losing streak, or

simply greed.

Page 23: Ignore Your Trading Goal

Think of "consistently profitable" as the goal and then figure out the exact

steps you need to get you there.

Page 24: Ignore Your Trading Goal

Do you just need a trading system or is more in-depth trade coaching and

education the better route for you?

There is no one size fits all standard but everyone can benefit from a

complete understanding of:

Page 25: Ignore Your Trading Goal

Method: Whatever your trading method is, you have to know it inside and out and be able to execute "on

demand". You have to test it until you have proven it has an edge and that you have enough faith in the system

that you don't second guess.

Page 26: Ignore Your Trading Goal

Psychology: There are some issues that we all have faced and some can still be challenging. There are some important biases that you should be

aware of (especially when system testing) so it does help to have the ear of experienced traders that can help

you adjust to these realities.

Page 27: Ignore Your Trading Goal

Risk: Without an understanding of risk and implementation of risk

management, trading success will remain out of reach. Risk does not just

mean percent risked on a trade as there are risk such as execution and gap risk you should be familiar with.

Page 28: Ignore Your Trading Goal

In the end, it's about choosing the outcome you desire and then setting yourself on the path that can lead to

that outcome. Driving a car to a destination is never a straight line but when you commit to the destination, you trust the route you have laid out

regardless of the turns you must make.

Page 29: Ignore Your Trading Goal

You travel the route, adjust, travel, adjust in a continual cycle and then,

without realizing it, you have arrived.

Page 30: Ignore Your Trading Goal