Consistent profits is what you want from your trading, not the other way around, right?
The mistake that many traders make is thinking that if they can ‘just be more disciplined’, then the problem will be solved, so they seek out resources on ‘Trading Psychology’.
Now there’s nothing wrong with that, but I’ve found that many are thinking that the problem is a psychological one, when in fact there are other contributing factors to the inconsistencies.
Factors that can be directly and immediately acted upon, and do NOT operate on the presumption that you have ‘psychological issues’.
They are in truth very simple and practical matters.
Let’s look at an example for illustration of just ONE of these addressable factors.
An Example.
Imagine that the company where you work just got bought out and you now have new management to whom you report.
You are told that the company now has a different philosophy, so there will be some changes in the day-to-day manner in which things are done, which include such items as,
- you have a new schedule with different hours. Instead of 9-5 with an hour lunch, you will now work 7 a.m. to 11 a.m.and then from 3 p.m. to 7 p.m.
- the computer system is being updated with new software.
- the operating philosophy is changing from longer term thinking to shorter term, and from moderate to more aggressive in nature
In come the new procedures, instruction manuals for the methods and software, and you get busy.
It takes a few weeks and a fair amount of extra hours, but you are getting used to the new ways of doing things and finally starting to settle in and being able to get a decent day’s worth of results in.
And then it happens – again.
Upper management has just ‘discovered’ that there is a newer, more profitable philosophy, strategy and method that they have decided to implement.
And with it come changes to: your hours, your software, your methods, etc.
So now you go through the whole cycle of implementing change again, trying sincerely to get to the point where you can just come in and do your job, do it efficiently and well, and then go home at a decent hour.
After several weeks of extra effort and considerable expense by the company…
… they do it again.
The question.
So how consistent would you expect the performance and the profits to be in such an operation over the course of a year? Probably not nearly as good as if they had simply figured out where they were going with the company from the start.
The problem is that when the only objective set out for the entire company to go by is to “Make lots of money”, it is so easy to get caught up in fads as they come along.
The Addressable Factor.
One HUGE inconsistency for traders (and general businesses) is jumping from one method or system to another and changing direction regularly.
This is different from adapting to a changing marketplace. That is a necessary skill and action from time to time for survival.
We’re talking about changing methods, systems, or even entire trading venues, just for the sake of “making lots of money”.
The addressible factor that creates significant inconsistency is…
But clarifying “proper” direction for a business is not exactly intuitive for most people.
There is a specific process and different sets of questions that need to be answered in order to arrive at a direction that will serve your trading business well.
It will also keep you on a consistent path, thus minimizing disruptions to your operation and wasted time and resources.
That’s why this is the first matter addressed in the Trading P.I.T. Club Training Program, getting clear on where you are going.
To put an end to your ‘jumping around’,
check out the P.I.T. Club Training Program
Cheers
Brian
“The Trading Turnaround Coach”
P.S. There are several factors that can be creating inconsistency in your trading. Today we looked at just ONE.
Don’t let these rob you of precious time and resources! Attend to them and get on with good and consistent trading by enrolling in the P.I.T. Club Training Program right now!