When I close the loop on trading, when I put real expectations on myself about following my rules real outcomes, trading becomes… so …. damn… boring. But is exactly what I want it to be.
Let me try and elaborate a little on what I said on Friday about closing the loop and taking the surprise out.
What does it mean to take the surprise out of trading. To me, it means when I press the button, the outcome is not a surprise. I set a stop loss, I set a profit target, and I walk away. The outcome is NOT a surprise. It will either hit my stop or it will go to the target. That’s it. I am not surprised the next time I open the platform. I know my outcome. Now, it’s my job, its my responsibility to put myself in the best position I can AT THE BEGINNING so that I get positive outcomes more than negative, and those positive outcomes need to outweigh the negative pretty heavily. So, there are four things that I have to do to take the surprise out trading
1. Put myself in the best situation possible in the form of well thought out and tested entries.
2. Know that the outcome is now no longer in question. It’s either profit target or stop. No other options
3. Make sure the positives substantially outweigh the negatives
4. Go look for surprise in something that matters. I want to be surprised by the time I spend with my kids and wife, like how awesome things just happen some times that you just CAN NOT AND SHOULD NOT try to plan.
Let my just put it another way that helped me to get over this hump this weekend. How I provide for the ones I love should never be a surprise. Do I want them to be reliant on something unexpected happening at work today, or do I want to be able to give my family peace of mind that what I do everyday is not in question, and that it will be beneficial for them?
And this is why I am so excited about trading being boring, because the more boring and routine I make my it, I open myself up to exponentially more surprise from the places that it should come from.
Plan your trades, let life surprise you