Dow futures were looking ugly this morning – being dragged down by Apple Inc. (AAPL) after it warned first-quarter sales than previously expected. Clearly, this has become a traders market, and one I’m looking forward to trade and profit off of.
“The definition of insanity is doing the same thing over and over and expecting different results.”
You’ve probably heard this before…it applies in nearly all aspects of life- dieting, exercising, financial planning, relationship building, and yes, trading too.
But you know what?
You don’t need a doctor to diagnose you. In fact, trading is one of the purest games around. All you need to do is look at your profit and loss (PnL). If your account is constantly bleeding money, then there is a hole in your game that needs to be plugged.
Now, before I go any further. Know this:
If you are losing money right now or have not been able to turn the corner and become consistently profitable trader… listen up.
Your first step is to admit that there is something wrong. Now, this not an attack on you, heck, it might not even be your fault. However, once you admit that there is a problem… you are more likely willing to change.
After all, when you are wrong in this game, it’s not just your feelings that get hurt… it’s your wallet.
Now, if you want to fast track your results in 2019, hit targets, and smash your goals… stop the insanity…
Here’s a look at some problems you may be running into, and how to remedy them.
Problem: Experimenting with different strategies
We’ve all been there before…excited to learn a brand new strategy and test it out – to see whether it works or not. Now, that’s fine when you’re a consistently profitable trader looking to maximize profits. However, traders often continue with their experiments in hopes of discovering a brand new working strategy that could potentially make millions…experiments can be costly, and there’s no point to throw away cash trading a strategy that may or may not work.
Solution: Hone in on strategies that have been working
When you’re experimenting, you’re focused on too many things at once. There’s way too much noise, and you really don’t know which strategy works best. For example, my three patterns have been consistently generating for multiple years.
Some may call it a lack of curiosity, but not experimenting too much has allowed me to master my strategy – which works in every market.
Problem: Trading a strategy that hasn’t proven to work
One of the most insane things a trader can do is continue to use a failing strategy. Now, there are two ways to learn trading: go at it on your own or trade with a community of successful million dollar traders.
When you go at it alone, you’re susceptible to trading a strategy that may not be proven…you might continue to use that strategy – thinking it’s going to work…only to realize you’re not making money.
You see, trading a strategy that hasn’t been proven to work could be detrimental to your trading account.
Solution: Find a consistently profitable strategy
It’s simple, find a profitable strategy that fits your trading style. If you want to start looking for profitable strategies, check it out here.
If you don’t write out your plans…then you’re just gambling. Think about it like this…if you had a business, you wouldn’t just go out and start operating without a plan.
When you don’t have a trading plan, you’re essentially trading blind. How can you hit a target you can’t see? How will you know when to stop out?
Solution: Write out trading plans – stating your thesis, and buy, stop, and target areas
For example, here’s a look at what I write before I get into trades:
“RVLT – January effect. Watching $.35 support as a pivot, range to $.60 if it works. The bottom was formed last week, if that can hold in Wednesday’s down market a bounce opportunity looks good here.
ANFI – January effect. Spiked last week from $.30 to $.60 on volume. Now a higher low pattern above $.36 is setting up. If it holds $.40 I’m looking for this to revisit $.50’s.
HDSN – January effect. Big move a few weeks ago and then drifting lower with the overall market. The bottom was formed last week around $.80, watching higher low around $.85 now to see if $1.20’s move is in the cards.”
You see, trading with a community and letting them know about your plans holds you accountable. If I don’t out of an area – and I said I would in my trading plan – other traders would call me out. Ultimately, this helps to stick with rules.
Problem: Being Impatient and Trading for the Thrill of It
I’ve been there before… staring at my screens all day with no trades for hours…the boredom sinks in. However, I remain patient and know if I just trade for fun, I’ll probably end up losing money.
Some traders will be impatient, get into a trade too early…only to get stopped out, and witnessing the position working to their favor – kicking themselves, wishing they were more patient. Or worse, they just go out guns blazing, trading for the excitement.
Solution – Practice patience
But how do you remain patient?
Now, we all get the feeling of Fear Of Missing Out (FOMO)…suppressing those feelings will help you be more disciplined. Trading for the thrill of it isn’t fun…however, making money is fun.
You see, having a trading plan helps with patience. I have my buy, stop, and targets in place. So once the stock reaches my level, I fire off an alert to Millionaire Roadmap members and get into the trade myself.
Here’s a taste of an alert:
Here’s what happened just 2 days later…
Not too shabby to kick off the new year…
After you close out a trade – write about it. What was your thesis? Where did you buy? Where did you sell? Where did you stop out?
Once you start answering these questions, you’ll notice a pattern of what works and what doesn’t. Then you can focus on those trades, and only trade A+ setups.
It’s a new year, and it’s time to make some resolutions…
One hack to solve all of these problems in one shot…
“You can’t soar with the eagles if you’re hanging with the turkeys.”
Now, I know what helped me come out of $250K in debt and turning the corner to becoming a millionaire trader…having a mentor and trading with a community of good traders.
You see, there is no monopoly on good ideas. Sure, I make my money by trading 3 simple chart patterns. However, you don’t have to follow just one trader – we know some strategies might not fit your risk profile – that’s why we offer so many different options in Millionaire Roadmap (Nathan, Taylor, and myself).
You see there’s one thing that sets successful traders from wannabes: profitability.
Successful traders consistently generate profits and they certainly don’t have problems with patient, FOMO, experimenting, and trading strategies.
But how does this help you?
Well, by surrounding yourself with seven-figure traders you would:
- Be trading strategies that have proven to be profitable
- Have detailed trading plans
- Increase your patience and remove the FOMO feeling
You see, trading the same patterns, catalysts, or values over and over again, and expecting the same outcome is the exact opposite of insanity…
The diary of a real $ trader,