In this post we are going to discuss one thing I’ve seen over the years with new traders. It is a failure to find a trading strategy and stick with it. Let me be clear on this. It’s not so much that traders do not find a strategy, it is that they do not stick with it.
Let’s first define this:
A fixed plan designed to achieve a profitable return in the markets.
What this fixed plan does for us is provide objectivity, consistency and quantifiability. All of those points are important because they give us the ability to have belief and conviction in what we are doing, which is vital in day trading or any type of trading for that matter.
So here’s the thing. If having a strategy provides us a way to objectively look at the market and quantify it, thus giving us conviction in what we are doing then why would we not stick with it no matter what?
Want the answer? Because as soon as our strategy has a losing streak we look for ways to fix it or for alternatives that are making money at the present time.
Think about this. You have a good strategy that has been back tested or proven successful by other traders. This strategy suits your trading style and personality, but as soon as it doesn’t make money for a week you bail on it looking for the next holy grail.
If you keep jumping from strategy to strategy than how can you ever master one? How can you ever benefit from the periods of time when that strategy is perfect for the current market environment and the profitable trades are pouring in.
Trading is about probabilities. Your trading strategy (along with your trading plan) layout those probabilities to which we then act accordingly. However, we must do this without question ALL the time!
If you talk to top traders that have been in the game for an extended period you will see one commonality. An unwavering commitment to executing their strategy.
For clear direction on finding the right trading strategy for you and sticking to it enroll in the Active Trading Blueprint. By enrolling now you will be added to Pete Renzulli’s mentoring group. A live weekly Q&A over the month of May where Pete discusses the biggest roadblocks traders face and fields your questions!
Not sure about something in your trading, ask Pete! Sign up here: Active Trading Blueprint
Remember, “Victory Loves Preparation”