One of my many flaws (and I mean many) when i first started trading was the need to bounce around from system to system. Whenever I would learn a new system or method, I would try it out until it hit hard times. As soon as I got a few losers in a row I would tell myself "man this system doesn't work" and go searching for the next one. What i didn't realize at the time was that it wasn't the system that was failing, it was me. I was failing to follow through with what I was taught and because of that I would eventually fail. I look at it like this, has Tom Brady ever thrown an interception in a game? Of course. After throwing that interception does he then quit and look for a new way to get the ball down the field or does he keep on throwing, knowing that a positive outcome is likely to occur based on past performances? I can use the same example swapping Tom Brady for Micheal Jordan having a shooting slump. Great athletes have a method and a routine that works, and when it hits a slump they don't just quit on it, they follow through knowing that it will ultimately yield them a positive outcome.
I bring this topic up because recently I feel as if I have been trading pretty well. My numbers still aren't where I want them to be, but I've found a system that i'm comfortable with, I've been following all of my rules, and I just feel that it's simply a matter of time before things turn around in a big way. However, recently I was approached with a new system from a professional trader. This trader has had impressive results with this system and he has been walking me and a group of others through the details and rules of engagement over the past week and a half. Me a year ago would have scrapped everything that I have been working on and jumped 100% onto this new system. But the me now is mentally in a good place with what i'm doing so the temptation is much less. Instead of thinking about dumping what I'm doing for this new system, I know that I'm not scrapping my current method of trading and I'm thinking of a way that I can use this new system to supplement my current style.
I thought of this today and it made me realize how far I've come as a trader on the psychological level (which is the most important part). I am no longer doubting my skills and running towards those with more experience. I am embracing them and my confidence as a trader is growing. Confidence is power. And if you've been a frequent viewer of this site, then you all know my views on POWER.
Thank you guys!
Hey guys, just a quick update of my trading day today. It was pretty interesting so I thought that I would share. My frustration started yesterday when I was stopped out of two swing trades due to some news concerning the Aussi. This morning I entered a trade with a profit target of about 70pips and a stop/loss of about 30. While watching the chart tick-by-tick I noticed that I made a good call and almost instantly I was up about 30pips. To make a long story short it looked as if the trade was going to reverse at the 38.2 Fib and go back against me so I pulled the trigger and cashed out. As soon as I did that (honest to God) I yelled at myself fro getting emotional and breaking my rules. A few minutes later the pair shot up and would have easily hit my original target of 70pips. So that trade added to my frustration.
Later in the day I had another small loss that didn't bother me to much, but what did bother me was when I got three trading signals at the same time. Because I was already frustrated I wasn't particularly excited about entering these trades, but I decided to follow my plan. The first of the three lost in about five minutes and I just turned away from my computer and felt like I wanted to punch something. I told myself that i should probably just cut my losses short on the other two trades and save face for the day, since it just seemed like a losing day in general. If I wasn't actively involved in the two other trades I would have left the house just to get away, but I knew that I had to stay. Ten minutes later while watching the Master's online I heard "Order Filled". I then said to myself "there we go, just my luck, what a bad day". When I turned on my other monitor to record the losses in my trading log I noticed that they had both actually won. What do you know! Glad I didn't get out like I did on the first one.
Each person in a unique individual, with a unique personality, and a unique style. I was reading a book (The New Market Wizards) yesterday morning that got me thinking about this topic, and it talked about the importance of doing it your way. The reason it is important to do it your way is because this is the way that allows you to receive the most self-fulfillment and eventually allow for you to be the happiest. I think you'll also find that you become more efficient in your task as well because you will have more of a personal interest in completing it the right way. Think about this for a second. If your task is to create a drawing of a beach house, do you think you would do a better job if you had to follow step by step directions, or would you do a better job if you were given basic guidelines, but were given the freedom to do whatever you wanted inside of those guidelines? For most people it's the latter. With that being said I'm not saying that you should quit your job to follow your dreams, rather find a way to throw your own little fixings on the way you handle everyday situations.
My example comes from my job. I am a professional trader in the Forex market and to put it in brief there are millions of ways that I can approach the market on a daily basis. I can be a scalper (one that looks to collect on one tick at a time) or a swing trader (one that enters a trade and holds in for days, weeks or even months), or a day trader (one that closes all of his positions at the end of each day) just to name a few. There are also just as many strategies or techniques to use in the market. I've been trading in the Forex market for about a year and a half now, and in that time, I'm pretty sure I've tried out almost every method there was following what everybody else said. It wasn't until about a month ago that I looked at my personality and really adjusted my methods to fit what type of person I am. Ever since I made that change I've felt so much comfortable on a day to day basis. And go figure, my results have improved as well. Comfort brings confidence, so if you have the chance in your daily routine, try to execute tasks the way that feels most comfortable to you instead of doing it stride for stride through another person's vision. If you have the chance to have some freedom take advantage of it and see how much better it feels.