Focus, it’s all about the focus.
As with most things that get difficult, it’s all too easy to lose focus on what it is you’re trying to achieve. Trading is no different. In fact, mental focus and discipline are possibly the two most important factors in achieving success as a trader. Having the strength to stick to your plan and not deviate when things get tough or frustrating is what keeps you on track.
If you’ve read any of my other posts on trading you’ll know that I constantly advocate trading a single strategy. If you’ve found that one “go to” set up that best suits your skill set, then as boring as it sounds… stick to that, and I mean stick to it, rinse and repeat the same strategy and have the patience to wait for that exact set up each time. By practicing this level of discipline you’ll be able to achieve a significantly higher success rate. Have you ever noticed how consistent you are when you keep it simple and stick to the basics? So when you’re going wrong by trying to force a trade, or you’re trying a slightly different strategy because you’re not seeing your go to set up in any stocks, take a step back and recognise how and why it’s not working, and then revert back to the basics. If you have a consistent set up that suits your personality and gives you a good 60-80% success rate, then really the only times that this isn’t working for you are when the market conditions are against you, or your head isn’t right… and when this is the case then you shouldn’t be trading. Take that day off.
So many people trade because they can, they have the means and they want to take a trade so they do. Even if the set up isn’t perfect… we’ve all done it! When you accept the fact that you’re not always going to see what you want, and understand that when it’s not there you can’t force it, you’ll greatly improve your overall performance. It really is ok to not trade. I’d much rather have a zero balance on the day than an unnecessary negative figure due to taking a speculative trade that didn’t match my strategy. FOMO is one of the biggest killers of consistency.
So, focus on that winning formula and lock in the relatively predictable gains, day in day out. Stick to the plan religiously and know when to sit on your hands. You can do it! It’s only a couple of hours a day!!!
Todays watch list for the open is: $PFMT $MARA $SEII $MYSZ … and then the scanner.
As always, trade safe and stick to the plan. Hit me up with any questions, I’d love to hear from you.