23/6 – [Blog Post #495!!] MY SECRET TO BECOMING A PROFITABLE TRADER

I am still taking some setups that I afterwards judge as sub-optimal.  Some are ok and some are quite simply bad. I am sure that I am able to judge the quality of the setups at the time that I take them.  So I will make a bigger effort at only taking good setups and at entering them at good levels.

My gut feel is that the reason for taking bad setups is that I am greedy or fearful that i am going to miss out on price moves and on trading profits, when in actual fact the opposite is true.  By only taking good setups I will probably be able to turn myself from a scratch trader into a winning trader.  And I should feel a lot better during each trading session – not necessarily “better”, but less stressed, less angry, less frustrated.  (Added 22/8: Am I afraid that there are not enough good setups in the market?  Is that why I believe that I need to take bad setups in order to make money?)

And I believe these are vicious circles – I have tried to explain my thinking with the diagrams below.

So maybe that’s all that it’s going to take now – just stop taking bad setups and getting in at bad levels – maybe that’s all that’s missing from my trading operation becoming profitable!  Fingers crossed, I will find that out after my long holiday (during which time this blog will be very dead!!).

good feedback loop bad feedback loop

This entry was posted in Trend-Following Strategy. Bookmark the permalink.

2 Responses to 23/6 – [Blog Post #495!!] MY SECRET TO BECOMING A PROFITABLE TRADER

  1. SS says:

    This diagrams are awesome and quite accurate especially when we look at them from a psychological perspective. 🙂

    Like

  2. Pingback: 3/8: Review of K7-specific blog posts | George's FX trading blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s