Trading: a decision does not imply the same thing in one part or another of the process

In this article, I want to address two key points:

– The same event can affect very differently depending on where we are on the road.
– An event may not affect the short term, but the long term. Something I decided today might not have an impact tomorrow, it probably won’t have an impact (or we won’t notice it because it’s too insignificant) but at long term it can greatly affect our path. On the contrary, something that may affect a lot tomorrow may not affect the long term path at all.

But… what are you talking about and how does it relate to my trading? In this article I will try to explain it.

Let’s take a very simple example: a loss, a stop loss. Does it affect the start of your business career in the same way as when you were consistently profitable for 10 years? On the other hand, how does a losing streak affect it. Immediately after this sequence, will our account be the same as in 10 years? Right now we may even be in the negative, but in terms of performance, having been trading this account for 10 years, will that mean anything? What looks like a big loss today, something that has affected our account a lot, in 10 years it will hardly be appreciated on the yield curve.

Why is it important to think about it? Especially for most of you reading this, who are probably newbies. And yes, it doesn’t matter if you’ve been watching the markets for 10 years…you only become a trader after you’ve been able to get a return in the market for at least several years without doing crazy things. Taking time to do something does not make you good. The richest people in the world are relatively young. Experience is not given by time. Time helps, but the experience is given by the time actually used. An incorrect approach for many years does not make you wiser, do not be confused. That’s why in our course, Diary of a Scalper, all students keep a diary. They write down their feelings, long-term vision of their journey, approach, etc. with the aim of periodically reviewing where we are, trying to avoid going around in circles, wasting time in procedures, courses that do not give results. Avoid wasting too much time because of false beliefs, hopes, illusions… that we often have alone.

So back to what we were talking about… now that you are at the beginning of your journey as a trader, you need to be very careful about how you approach every adversity you encounter. When you’ve been trading for 10 years, you don’t care about that losing streak. You will continue to live a normal life, laughing and being happy without worrying about it, but today, admit it, after a losing streak, you are not able to disconnect like when you win. How you let this continue to affect you, you will get nothing. Your emotions will play on you sooner or later. You have to control them.

Let’s think cold and give each thing the importance it really has in our project, keeping in mind that this project is a project for life, not a project to impress your friend in the tavern.

Leave a Comment