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A thread on a different way to profitability in trading (at-least worked for me). No trading trainer or book can teach you this.
When you start your trading journey you will get bombarded with rules. Follow a Stop loss. Limit your risk to 2% max. Position sizing is the key etc etc
But what happens when you try to follow those. You fail & fail miserably and you think probably I have problem with
But what happens when you try to follow those. You fail & fail miserably and you think probably I have problem with
with my personality and the day I follow all these rules I will be profitable. Well let me break it to you - IT WILL NEVER HAPPEN! And even if you are able to, probably you will find you are not best trader around.
Why? Because when trading you will often find that you make the
Why? Because when trading you will often find that you make the
same mistake again and again even when you know about it. And knowing that all traders follow those rules just amplifies it. “Oh I am so bad at this I have done this mistake 20 times now I can never overcome this” & this becomes a belief.
So whats the solution?
So whats the solution?
Keep doing it. Yes keep doing the mistake. Why? because in sometime you mind will automatically find some innovative ways to overcome that & you wont even know you have changed.
I will share an experience - I always used to be bad at position sizing. Loading more & more to
I will share an experience - I always used to be bad at position sizing. Loading more & more to
overcome the loss. I would take up a big loss first and then loose more to regain that first loss.
For some months I knew this was a problem but every time I was doing the same thing and writing it down added to my anger “Why this is happening” why cant I
For some months I knew this was a problem but every time I was doing the same thing and writing it down added to my anger “Why this is happening” why cant I
just reduce the position sizing thats what everybody does. Thats the golden rule & I couldn’t seem to follow it. Plus I was following the rule of maintaining a journal as well (that also only added to guilt)
The one fine day I stopped writing it down & just continued
The one fine day I stopped writing it down & just continued
trading with the problem. I was expecting I will stop it at least one day. Though it never happened, something strange started happening without me noticing.
I started taking smaller stops & with time my risk reward became almost 1:10. Now the problem I had of position sizing
I started taking smaller stops & with time my risk reward became almost 1:10. Now the problem I had of position sizing
was no more a problem because overall I was profitable.
Takeaway - I thought position sizing was the problem, whereas my mind knew there is only one problem to solve one pain to avoid - Pain of loss. Only one goal to achieve - Become profitable. Forced position sizing did not
Takeaway - I thought position sizing was the problem, whereas my mind knew there is only one problem to solve one pain to avoid - Pain of loss. Only one goal to achieve - Become profitable. Forced position sizing did not
work probably because of the personality traits I have. But my mind was working on the problem all this time in the background without me knowing.
So if you think you have problem with trading rules/discipline (or any other activity) continue doing what you are doing. None of
So if you think you have problem with trading rules/discipline (or any other activity) continue doing what you are doing. None of
rules matters much in the end. You will probably end up making you own rules. The theory exist because trainers/writer need to sell something. There are people who don’t follow any rules and yet are profitable.
Continue doing what you are doing. Your mind is adapting you just
Continue doing what you are doing. Your mind is adapting you just
can’t notice it now. And one day when you look back all you will see is MAGIC!!! 
