Many people are trading with the enemy and do not even realize it. It’s almost like the invisible hand pulling profits from your trading account.
The two biggest issues I see that essentially have someone trading with the enemy are:
Not Keeping a Trading Journal
Let’s take about the trading journal. The reason this is so key is because it enables you to find the biggest hidden issues in your trading. By keeping track of your daily actions you can look back and see what trades you took, why you took them, if you broke any rules or altered your risk-reward parameters as well as noting any news items that impacted your positions and how you reacted to them.
So much of what you personally should and should not do can be learned from keeping a trading journal. Example – if you trade after hours and see that a good majority of the time you are breaking your risk-reward parameters on trades due to the volatility and larger spreads after hours, well guess what, STOP! Clearly that is a money loser, but if you are not tracking it how will you ever know. Instead it becomes an invisible hand stealing money from your account.
Not Sticking to Your Strategy
The other issue leading to trading with the enemy is when traders do not stick to their trading strategy 100% of the time. Admittedly this is much easier said then done, but those who actually execute it day in and day out for the long term are the traders making a living in the market.
If there is one clear common attribute among the top traders at any office, this would be it. I’ve seen it personally and if you look around you will too. The bottom line is anytime a trade comes up that meets all your criteria you take it, no matter what. You also never take trades that don’t meet your criteria. These simple to say statements are the true difference between the haves and have nots in trading….it’s so simple, yet so freaking hard!
If you are not keeping a trading journal or do not have a clearly defined strategy feel free to take part in Active Trading Blueprint risk free! You’ll build out your strategy step by step with us and learn what to track in your trading journal. Click here for the details: ATB
Remember, “Victory Loves Preparation”