A Trader’s Resolution
Whoosh, bang, pop. If you have some confetti, this might be a good time to toss some up into the air. You see, you may be reading this article on a warm August evening or a cool September morn; however, as I write, I am in the midst of a New Year’s holiday. Concurrently, I am finding myself inundated with the sounds of New Year’s resolutions. I hear the normal echoes of weight loss, the year to stop smoking, to exercise, and to improve family values, but then there is my resolution. Call it my “Trader’s Resolution,” if you will, and no matter of what time of the year you find yourself partaking, you might want to consider adopting my resolution also. The good news here is that you can start applying this simple trading resolution in your life immediately (no need to wait until January 1st ), but the bad news is that this is one resolution which is not allowed to be broken. No excuses, no procrastination, and no underestimating of your own abilities: this resolution starts right now (with the possible exception of one quick paper horn honk if you should happen to have one resting near your trading room.)
OK, you’re ready; the resolution states, “Effective today, and throughout the next full year of trading, I will plan to follow the rules as I was taught (from my mentor, trading coach, or trading program). I will plan to set my stops as I was instructed (not removing stops just because I am down some money, see support below my stop, or have this infallible hunch that everything is going to turn in my favor.) I will plan faithfully to place trailing stops where warranted, practice proper money management (no cheating here), and to keep greed (in part, this means controlling the emotions) and gambling (remember, this is not some fly by night lark, this is a business, and I need to run it like a business) out of my trading room. “
OK, there you have it. Sound too basic? Why? Remember, in trading, simple is good, and this works! Besides, you will be surprised at all the benefits emerging from this resolution. For instance, your trading life will be less cluttered because you will be focusing only on the education that you have been taught. This will lead to your ability to analyze the markets with greater skill, and will allow you to find those all-important set-ups more quickly, regardless of the time frame in which you find yourself trading. Other perks should include psychological growth (knowing that beyond any doubt you can do this), and better consistency – leading to greatly-improved profitability (just for starters).
So, what’s left? Well, congratulate yourself if you made the resolution decision; now, be fully committed to making the next year the best and most successful trading year that you ever have experienced. Now, that’s worth a horn honk from this end, “HONK”. I hope that it wasn’t too loud and that you enjoyed it.