Every great trader goes through rough patches in their trading career.
But, no matter what, they always doubled down on their process to get back on track.
If this is you early in 2023, here is the 4-step process to follow (and finally win back some momentum):
But, no matter what, they always doubled down on their process to get back on track.
If this is you early in 2023, here is the 4-step process to follow (and finally win back some momentum):
Step 1. Evaluate General Markets (2 parts)
· Analyze the current market trend
Even if stocks are acting well on their own, they will eventually succumb to market pressure.
Make sure the market trend is up before focusing a lot of effort long.
· Analyze the current market trend
Even if stocks are acting well on their own, they will eventually succumb to market pressure.
Make sure the market trend is up before focusing a lot of effort long.
· Analyze the leading industry groups
The next part of this equation is centered around analyzing the leading industry groups.
Properly identifying which groups are leading vs. lagging will help you decide where your money is best placed.
The next part of this equation is centered around analyzing the leading industry groups.
Properly identifying which groups are leading vs. lagging will help you decide where your money is best placed.
Step 2: Create a Plan
Now that you've analyzed the current market environment, you can create a well-versed plan of attack.
Always remember that you will only reach consistent success in the market with a clear plan – there are no exceptions!
Outlining a proper plan:
Now that you've analyzed the current market environment, you can create a well-versed plan of attack.
Always remember that you will only reach consistent success in the market with a clear plan – there are no exceptions!
Outlining a proper plan:
In its simplest form, a proper plan consists of:
→ Your overall trading strategy (edges, setups, entry/exits)
→ General risk management rules (position sizing, expectation breakers)
→ Daily & Weekly Routines (scans, journal prompts, PTA)
Keep it super simple!
→ Your overall trading strategy (edges, setups, entry/exits)
→ General risk management rules (position sizing, expectation breakers)
→ Daily & Weekly Routines (scans, journal prompts, PTA)
Keep it super simple!
Step 3: Execution of Your Plan
Execution separates the great traders from the mediocre ones.
Here are some tips to optimize your execution:
· Set your buy/sell orders when market is closed
· Ensure you're only trading your best setups
· Know what rules to break & when
Execution separates the great traders from the mediocre ones.
Here are some tips to optimize your execution:
· Set your buy/sell orders when market is closed
· Ensure you're only trading your best setups
· Know what rules to break & when
Step 4: Analysis of Your Progress
At least once a month you must conduct your Post Trade Analysis (PTA).
At the end of the day, this is where you'll find the most valuable information about your trading.
A quick framework to use for your PTA:
At least once a month you must conduct your Post Trade Analysis (PTA).
At the end of the day, this is where you'll find the most valuable information about your trading.
A quick framework to use for your PTA:
· What setups/edges have worked the best over the past month?
· What setups/edges have performed the worst over the past month?
· What actions can I take to double down on the good & remove the bad?
You've won your PTA for the month if you can answer these 3 questions.
· What setups/edges have performed the worst over the past month?
· What actions can I take to double down on the good & remove the bad?
You've won your PTA for the month if you can answer these 3 questions.
TL;DR: A struggling trader's 4-step process to getting back on track:
1. Evaluate The Markets
2. Create a Plan of Attack
3. Execute Your Plan
4. Analyze The Results
Follow it, and you'll start winning again.
1. Evaluate The Markets
2. Create a Plan of Attack
3. Execute Your Plan
4. Analyze The Results
Follow it, and you'll start winning again.
That's it!
If you enjoyed this thread:
1. Follow @TraderLion_ for more content on navigating the stock market
2. RT the tweet below & help a struggling trader:
If you enjoyed this thread:
1. Follow @TraderLion_ for more content on navigating the stock market
2. RT the tweet below & help a struggling trader:
https://twitter.com/1485052376/status/1636024206092562434
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