I’m going to take a little break from posting charts for a little bit. I’ve pretty much been grinding back and forth between profitability and loss. So, nothing new or groundbreaking there.
I want to reflect on the importance of having strict rules to abide by before entering trades. I’ve written them down from time to time but never really gave them much thought. They’re sitting somewhere in “My Documents” folder on my PC in a sub-folder I don’t even know. But it’s not in the “Untitled” folder, because that’s where I like to keep my porn. So inconspicuous, right? Untitled. Nobody is going to look there. Haha, wrong! I bet you guys do the same shit, huh? Or maybe you like to keep it in “New Folder.” Or “Misc.” or “Stuff.” Hah. Derp.
And it’s either that or you have the rules in your head. But again, we all know that doesn’t work. Oh yeah, sure, I’m only going to enter when this this and this occurs. Oh, wait, this setup looks tempting….. lemme just do it one…. yeah, just one time. Rrrrrrrrrright.
Usually, I develop an idea of how I want to trade and sample it out and see if it works. Putting down a strict set of rules was never on my radar though and now I am understanding how important it is. Derp. I like this word. If you’re curious, here’s what a derp is. http://www.urbandictionary.com/define.php?page=2&term=derp
So this week I have been developing a strict guideline for how I want to take trades. This will allow me to stop chasing trades, stop wanting to get in when I see that I just missed a trade and also keep me from micro-managing a trade that I have no business touching. Derp.
When I see a trade take off, my first thought it “Oh, shit balls, I should’ve taken that trade.” I hate getting left out, don’t you? But what I fail to see is that the trade didn’t fit my guidelines for entering a trade. Then the next trade that shows up resembling the last one, which isn’t even part of my rules, I try and enter, expecting the same results. Derp. Shit, so much for having rules.
And having strict guidelines for entering a trade also leaves you with no trades to take on many days. I know my rules will give me winners 60% of the time but if I only take 5 day trades a week, I ain’t gon’ make no money. So I think. But what’s better? Taking 5 day trades, 3 winners and 2 losers for let’s say +14 pips or taking 12 trades where I may have 5 winners and 7 losers giving me a total of -1 or maybe +2 or 3 pips (that’s what I’m doing right now). Taking +14 pips, depending on how many lots your trading, can be very lucrative. So the volume of trades is not as important here. And my trading rules should give about 3-4 trades a day, unless it’s just one of those shit show kind of announcement days where the chart looks like dog shit. Derp.
So, I know my rules *should* give me at least 2-3 trades a day. If I stay strict to them, and not let the trades that rocket off without me affect my mental game and improve the process from there, I’ll be driving Lambos and wearing gold grills up to the gills. Derp.
Alright. Going forward:
- Stay strict to the rules you’ve developed over the past 3 months. You put in the work and know that it will be profitable in the long run.
- If I miss out on a trade that didn’t fit my rules, don’t get my panties in a bunch
- If I don’t take a trade that does fit my rules, slap myself in the balls
- After a few weeks, if I’m still having issues with the actual rules not being profitable, revise them to address what issues I’m coming across to make them (potentially) more profitable.
- Don’t get ADHD and try other new shit out thinking yours doesn’t work anymore
- Don’t get ADHD and try other new shit out
- I repeat, as much as you love to *SQUIRREL!!!!*…..
- Sorry, I have ADHD
- When you are tempted to quit your rules and try other new shit, I REPEAT DON’T FUCKING DO IT. STICK TO YOUR ORIGINAL RULES. DERP
- When you come back to read this thinking “ah my shit strategy and rules don’t work,” KEEP DOING IT. STOP YOUR ADHD SHIT!