Hello Traders – In this post we are going to discuss how to keep your eye on the big picture when it comes to:
We can get so caught up in the everyday ins and outs of our trading, especially if you are day trading, that we lose focus on the bigger picture and start to treat each and every trade like it holds more weight than all others.
Now don’t get me wrong, every trade should be treated with the utmost attention and discipline, but that kind of gets to my point. Occasionally we have days or trades that don’t work. It’s like a baseball game where you get beat 7 to 0 despite having a solid game plan and being prepared.
Sometimes stuff just goes wrong. However, we cannot let those moments hinder our ultimate goals and throw us off our trading plan. In the end your results are not measured by just one day or a single trade, but by the cumulative result over an extended period of time.
Sometimes we need to remind ourselves of this because after a few bad days or even a week you mentally press yourself to change something when nothing really needs to be changed. If you have a sound trading plan that produces results over the long-term and have stuck to all the rules and disciplines that come with it then you are in fine shape.
It’s just a bad stretch.
However, if you have deterred from those things then you know what the issue was and all you have to do is go back to following your trading plan and remain discipline. Let me reemphasize;
Follow Your Trading Plan
Many times after a bad day or two, we as traders start to press the action and look for more trades that loosely resemble our setup criteria, which tends to exacerbate the problem and turn what should just be a day or two of poor results into weeks worth.
This has a double impact because now we have eaten up future profits that need to offset those “extra” trades.
Why do we do this?
Because sometimes a trader just gets too caught up “in the moment” and doesn’t keep their mind on the big picture results.
For more on trading plans and setting your outlook for successful trading check out: