Die Hard is a senior trader who makes a ton of PnL. Unfortunately for him and our firm, he also loses a ton of PnL.
This is actually a good problem to have for the trader willing to review and work. Many experienced traders aren’t willing to journal and review and adapt. They want to just keep hitting the buttons and see things improve. They also inevitable have substantial bills to pay and focus on making money again quickly.
“The definition of insanity is doing the same thing over and over and expecting a different result.” -Einstein
The problem is this cannot be their focus. They need to take a few steps back and reclaim their trading edge. They need to understand their good trades from their bad.
- What are your best trades?
- What are the variables of those trades?
- When do they tend to work?
- How can you prepare to find more of them?
- How do you stop missing them?
Short term experienced traders tend to trade their ideas without overlaying variables that will bring more edge. Said another way, they just trade their thesis. Instead of trading, for example, a much better trade:
Thesis plus
News catalyst plus
Price confirmation (or they see it!) plus
Fight for price
Evernote and Tradervue are excellent tools for review. On our desk we teach traders to keep their trading journal open during the trading session and make notes as market trading lessons arise. This also helps traders focus on growing as a trader instead of making PnL.
If you make a lot of PnL, but also lose a lot of PnL you are in a good place. Take a few steps back with your trading. Study your strengths. Write them down in detail. Lower your risk. And then slowly raise your risk as you show positive trading results.
The result? Die Hard has started winning again as a trader.
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*no relevant trades
