Every time you go against your rules, every time you don’t have rules around your trading, every single trade is a mistake.
Here’s how to eliminate those mistakes.
We’re talking about freedom today. (or you can Watch the Video – 10 mins)
So here we are, last day of the trading month of June heading into the last six months of the year.
How was it?
How has the month been for you so far?
I’ve just finished the Friday accountability with our traders in the Tribe of Traders, and quite amazing, the sort of results that are coming out.
Freedom comes from having profitable months doesn’t it?
Having consistent profitable months, month after month, and allowing your account to compound.
I’ve spoken to quite a few different traders and every one of them has had a profitable month, which is awesome, and finished profitable this week.
And for a lot of them it’s been quite an an interesting experience because they consistently are saying to me that they’re trading less.
A few actually stopped trading a week ago, some stopped trading a couple weeks ago, because they got close to their target.
Some just placed one trade a week, others just maybe two a week.
And every one of them, have said to me that it’s amazing how few trades they actually place to be profitable.
Here’s the thing…….
Overtrading, will be the difference between you having a profitable month and not having a profitable month.
Less is more, as one guy said to me this morning.
It’s something I learned a long time ago.
And the other thing as well that makes the difference between being profitable and not being profitable is making mistakes.
That has a direct impact on your profitability.
Making mistakes could well be the difference between you being profitable or not.
I’m sure you’d rather be up 1% or 2% a week consistently, than being up one week, down 4% next week, up 1% the following week, down 2% the following week because you’re making mistakes.
Rather, just be up 1% or 2% a week consistently, because that is what makes the difference in your account.
That’s what’s going to give you the freedom over time is that small gradual growth of your account over time.
Now, it doesn’t look like much initially.
Yeah, one trade, two trades, four trades. After six months, it doesn’t look like much. It doesn’t look like your account is growing that much.
But it’s just like the magic penny, it just takes time- and over time – it will compound.
But it’s the small mistakes we make in our trading that is often the difference between making a profitable month and not.
For example, this week some people placed trades before the Kiwi news came out because they forgot that there was Kiwi bank news this week, and that doesn’t form part of their strategy.
They were up in the week, placed this Kiwi trade, beautiful setup.
It was lovely, but a few hours later there was Kiwi bank news and got stopped out.
And that was a mistake.
Some people, one, they didn’t make as big a gain this week as they would have had they not made that mistake, or two, some people went into negative at that point with that trade.
So further went negative for the week at that point.
The important thing is that is as much as possible to cut out mistakes.
Because it’s the mistakes you make in your trading that’s going to be the difference between profitable and non profitable weeks and months.
And at the end of the day, making those mistakes will push out the time in which you achieve the freedom that you’re seeking, which is why you’re trading.
You’re trading to build wealth.
You’re not trading to be a trader.
Sometimes we lose focus on that.
So, what I’ve suggested is each time you find yourself making a mistake, do something to make sure that you don’t do it again.
For example, in the Tribe of Traders we create a watch list every morning of what it is that we are looking at to trade for that day for the two strategies that we use in the Tribe of Traders.
So, people who forgot the Kiwi news for example, my suggestion is that with their watch list, they also write down any relevant news that is pertinent to each instrument for that day.
And also put alongside it the latest time which they are prepared to put that trade on.
So for example, that the Kiwi news is 2:00 AM UK Time the following morning. And there’s a Kiwi instrument that’s on their watch list. So if there’s a setup, what’s the latest time that they will consider placing a Kiwi trade on on their account?
That might be midday, it might be 2:00 PM UK time, for example, giving their trade 12 hours before the Kiwi news.
This is just an example. But write down what is the latest that you take the trade, considering the news.
So, each and every single time you find yourself making a mistake, make sure you do something to ensure you don’t make that mistake again.
Because I honestly do believe that the majority of times …
Strategies are not hard to learn, and trading itself is not difficult.
The difficulty with trading is the mindset.
That’s the challenge.
The actual trading itself is not difficult.
But apart from mastering mindset, mastering the mistakes we make is significant and has a direct impact on our trading and the results in our trading.
So eliminate that.
We’ve got enough to deal with around mindset for trading.
So eliminate mistakes as much as humanly possible from your trading and you will notice a difference in your trading with that, I promise you.
EACH AND EVERY time you make a mistake – put in place a safety net to ensure you don’t make it again.
That’s why reviewing your trades is essential.
Win or lose, reviewing your trades is essential.
And ask yourself, ‘Did I make a mistake’?
Or if the mistake is more obvious, you will know it.
Like for example, the story I told you about the Kiwi trades with the Kiwi news, but sometimes even your profitable trades can be mistakes as well, and you might only realize it after the fact.
So just because it was profitable doesn’t mean it was not a mistake.
If there was a mistake, next time it could go against you.
So make sure you are aware of the mistakes you make, why reviewing your trades is so important.
So that’s the task for July going forward, make sure that each time you make a mistake in your trading, you ensure that it won’t happen again.
Cut out as much as humanly possible of the mistakes you make and I promise you will find a significant difference in your trading.
Scientifically, it’s been researched that we make on average 30% mistakes in anything we do in life, not just in trading, in anything.
And every time you go against your rules, every time you don’t have rules around your trading, every single trade is a mistake.
So eliminate those mistakes.
We have enough to deal with but mastering our mindset around trading without actually messing up the actual tactical side of trading and making mistakes.
It will be the difference between you achieving freedom in five years or not.
Because in the Tribe of Traders, we’re all on a five-year journey.
We have a goal that we’ve set that we want to achieve in five years and we are very strategic about how we get there.
And each time you make a mistake you’re pushing out that five years a little bit further.
SO SPEND SOMETIME REVIEWING TRADES – SPOTTING THE MISTAKES AND PUTTING IN PLACE A PLAN TO ENSURE YOU AVOID MAKING THEM AGAIN!