Swing Traders Begin to Win When they Review Results
If you could go back in time
150 traders were asked “If you could go back in time and give yourself advice as a new trader, what would you tell yourself so that you could earn more money sooner?”
Learning from experience, your own experience is the most effective method to master any skill. You can learn successfully from a mentor or teacher but your own voice is by far the most influential opinion you will consider paying attention to.
“Having the right mentality going into every trade is important. It doesn’t matter if the trade worked out or not. You need to pick yourself back up on trades that don’t work out and have the confidence to know that you can make it back on the next trade.” That’s unbelievably well-put.
“As an extension to this, one should not think of a not-profitable trade as a loss, but instead as an expense. The winners should be thought about as income.” This is perfect. You’re running a business. Think about it as an expense or income as opposed to, “Oh my god! That one trade didn’t work.” You’re looking at it from a longer perspective.
“The sooner your mentality changes from wanting to be right to the mindset that this is a business and it costs money to make money, the better your mentality comes. You let your emotions affect you a lot less in that way.”
Professional athletes hire a coach to improve their game and Fortune 500 corporations hire consultants to create a plan of action to reach new goals and inspire the executives to implement the plan.
Here is how to coach yourself to success:
- Scan and analyze the market, sectors and individual stocks for the best trade scenarios and explain why it is a trade with a high expectation to earn a profit.
- Evaluate ideas for confirmation as to quality of the idea or why it may have a low expectation for profit. The goal of this exercise is for the swing trader to understand the clear difference between easy money and hard money.
- Keep a trading journal and be diligent in writing out why you took the trade and how you managed it. This is not the place to document results, it IS the place to learn from your own feedback to improve.