You’re in trading to make money and if you’re not doing this one thing, then you are denying yourself profits every month. You are leaving money on the table, losing money and missing great opportunities to maximize your profits.
If you are already profitable in your trading, you still want the most you can make. If you’re only marginally profitable or if you’re losing money, you want to get in the black and and in the biggest way possible.
The traders that are making the kind of living that you want have a high level of confidence and they make the discipline part of trading look easy. It’s not that they necessarily have a better system than you do. It is in their confidence and their discipline.
That’s where their true edge is in trading – they have the confidence to enter the good trades and let them run, and the discipline to get out of the bad trades to keep their losses small.
So how do they have this fearlessness and cool-headed discipline? They measure and track the critical aspects of their trading system on a regular basis. It is absolutely amazing what a difference this makes.
Here’s how it costs you when you don’t analyze your system and track your metrics:
* you’ll stay in good trades too long and wind up giving back profits you already had in hand
* you’ll stay in bad trades too long and turn small losses into big losses
* you’ll hesitate to pull the trigger when your system says “go”, and you’ll time your entries poorly
* you’ll second guess your system and enter trades that you never should
* you’ll make changes and “tweaks” to your system that reduce its profitability
* you’ll keep adding indicators and rules until your system becomes confusing and difficult to follow
* you’ll jump from one system to the next, “hoping” that it will make you more money
* your fears will get the best of you on a regular basis, causing you to make all sorts of mistakes
Great traders also don’t try to trade five or ten different systems. Most often they trade only one system and get very good with it by knowing it inside and out.
They have as many choices as you do regarding which system to use, but among their choices, they determine which one is best through analyzing the metrics with real market data. They don’t just go on trial and error. They let the metrics tell them where the money is.
When they hear about a new system, strategy or indicator, they analyze it in a demo account before putting money at risk to see if it is worth pursuing. If the metrics are better, then great! If not, they pass and stick with what the their analysis tells them works.
They key is in knowing what metrics to use, testing the system with real market data, and then evaluating those critical metrics.
When you know the strengths and weaknesses of your system, you can have the confidence to trade it well. This includes having the discipline to stick to it when the market does its thing, regardless of what it does.
If you aren’t testing your system, then you are denying yourself the greatest and most powerful tool you can have. You’re also extremely likely to be leaving money on the table that could be in your account instead.
Even if you are backtesting, are you doing it correctly? Could you still be missing out on more money to be made with your system if you had better information to work with?
Are you looking only at the bottom line each month, or do you know what measurables you need to know to truly maximize your system and your profits?
Here’s what I use in my trading to have total confidence and easy discipline.
==> The Trading Performance Analyzer
It is very user-friendly and printer friendly, plus it gives you the critical metrics you need without overwhelming you with un-necessary information.
You can get a free backtesting guide and a powerful report to eliminate your anxiety as bonuses with the Analyzer.
Go here now and stop denying yourself profits => https://insideouttrading.com/tpa/
Cheers to greater profits!
Brian
P.S. Every trade you place, every week and month you trade without knowing your metrics, you are severely at risk of hurting your bottom line. Act now. Don’t wait or think about it!