Successful trading is a result of all its parts. Success cannot be achieved unless all the parts that make it are working in unison and full health. There must be a process. Just like when a factory builds smartphones. Each smartphone is exactly the same as the next and the one before it because the factory follows the same process over and over again.
The smartphone can only be because the manufacturer followed a well-defined process. The process is clear and concise. Clarity is essential to continuously churn out smartphone after smartphone with a high degree of precision and to a high standard. The same is true in the markets.
You need a clear and concise process that must be followed in the same way - every time you place an order. The market loves to trample on those who do not play by the rules! Get a proven strategy. Be disciplined enough to follow it to the letter. Do not be swayed by the noise. Your rules are there to protect you.
The manager of the smartphone factory is not concerned with making the smartphone. (S)he knows that the smartphone is the end-result of a process. If you follow the process, the result is always success. The manager must make sure that every stage of the process is adhered to and that every station is functioning properly and efficiently. That manager knows that a lack of discipline will only lead to a faulty smartphone or a calculator - or the Job Centre!
Do not get complacent when things are working well and do not get distraught when they are not. Focus on the process an the end product will take care of itself. Your process should always be your safety net.
Remember: if one cog is broken, the whole system is jeopardised. The best way to attain your trading goals is to be able to do the right thing over and over again with consistency. In other words, follow the process from start to finish every single time without fail. Make your trading mechanical to eliminate emotion.
Trading is the greatest legal scam in the world. The guys who continuously milk the markets are the ones that look at the markets for what they are. They are usually the ones who obey the rules. Trading is just an exchange of money from account to account. It does not matter what it is - the Euro, Tulip futures or Apple shares.
There will always be the same percentage of winners and losers. Those who create the rules and stick to them will always win. Those who do not, will fund the accounts of those who do not. It doesn’t matter what the numbers are. The rules are the rules.
The most governing of the rules is that someone is buying whilst another sells. Whether it is to another trader or to your broker, one person is buying and one person is selling. The one person who get paid is the one who follows the rules. The other one always pays. The other one is the one who moves the protective stop loss to “let the trade breathe” and always loses more than originally planned.
The trading world is full of winners and losers - more losers than winners. If you’re not winning yet, make sure you’re learning. Make sure your lessons are not expensive! And if your broker is asking you to trade the EU Referendum, remember who earns and who funds. Be a mosquito, drain the market without getting squashed!