Focus on The Process and Steady (profits) As She Goes!

Whilst chatting online last week to another student who had recently completed a personal mentorship programme with Sunil Mangwani, I asked how their trading was going?

The answer came back, rather melancholy, that ‘I’ve only made XY% profit this year’.   To which my reply was great, that’s a neat profit!  The ensuing online chat was then along the lines that constant steady profits no matter how big or small when compounded grows ones trading account nicely over time.

When starting out in the world of Forex if you can consistently make profits, whatever their size, then you are moving in the right direction.  So if you are learning how to trade Forex, then set your overall expected profit targets at a realistic level and over time these will be exceeded and you can set a higher bench mark for yourself.  The more pressure you put on yourself to make money, the less well you are likely to trade.  Far better to focus completely on the process of trading than on the expected outcomes, as they will take care of themselves if you can get the process right and down to a fine art.

Top Trading Tip:  Focus on the process of trading such as implementing your chosen strategy to perfection, along with good trade planning, risk and money management and the profits should take care of themselves.

Less is More and More is Less – Don’t Over Trade!

When I first started trading I felt I had to be in a trade or I was going to miss out on a move and as result I found myself over exposed to the markets even though I was managing my risk on each trade properly.

I soon began to realise that over trading can kill your account quite rapidly.

I now plan all my trades down to the last detail and only take those which appear to have a higher probability of succeeding.  Sure I still have losing trades but the profits from my winning trades by far offset those losses, which are inevitable.

So following on from my previous Blog about trying to have the Patience of a Saint and the Discipline of a Soldier when trading the markets, if we apply those ideas to our trading and stick rigorously to our Trading Plan, Trade Plan, Strategy and Risk & Money Management we should be able to stop ourselves from Over Trading.  After all we need to preserve our trading Capital to take best advantage of those moments in the market when we have total clarity of the likely direction and are thus in for the kill at the right moment.

These events tend to take place when we get what I and Sunil call confluences taking place, where everything seems to come together at one point in time across several timeframes, but more on that topic in a future blog article.

So even if you only take one good really good well planned trade a week it will most likely pay well and you will minimise your losing trades and on balance will see your account grow faster.

Top Trading Tip:  Try not to take impulsive, unplanned trades and don’t Over Trade and kill your account, pick and plan your trades carefully, as Less really can mean More.