The Consistent Trader

Ways your mind can blow out your account

• Need to be right, take profits early• That’s 4 losers in a row, I am stepping aside• That’s 4 losers in a row, lets modify the system• I can’t afford this trade turning into a loser, let’s move the stop• My plan says use ‘2 wins and done power of quitting’, but look at all

those winners later in the session• There is no way that trade can be a winner, I am passing

Trade With Confidence

• Establish a trade plan and commit to following it• You want to be 90% mechanical so you need rules for as many

situations as possible• Back testing will help you establish this trade plan• Keep track of discretionary decisions• Find a market and time frame that fits your personality/trade style• Understand that your method gives you an edge.• Focus on executing your trade plan and forget about the money.

Balance the Highs and Lows

• You will have winning streaks – Don’t think for one second that all days will be like this.

• You will have losing days – Don’t think for one second that all days will be like this.

• Don’t blame markets, system, or any other outside influence. Take responsibility for your own trading

Trade Journal

• Keep a daily trade journal. Record your trades so you can track your performance. Use a spread sheet for this.

• Review your journal on a weekly and monthly basis to know how your trade plan is performing.

• When you hit that losing streak, you can go back to see how that market has reacted to losing streaks.

Money Management

• Keep risk at 2-3% of your account per trade• Find markets that fit your risk profile. If you can’t get through a trade

without yelling, sitting on the edge of your seat, or breaking out in a sweat then you are trading the wrong market with too much risk.

• Establish a trade plan for that market that will allow you to execute the trade without panicking.

• Establish a circuit breaker. Once you hit that circuit breaker what do you do?

• Time based/financial circuit breakers