1. Not practicing what I preach.
2. Over complicating the whole process.
3. Not trading in a methodical way.
4. Not using sound money management.
5. Taking profits too soon.
6. Letting losses run, hoping for a turn around.
7. Focusing too much on short term results.
8. Not recording and reviewing my trades in enough detail.
As you can see I have probably been committing every trading error in the book. I have spent numerous hours trading and reading about trading with the net result being a negative profit and loss statement. I must have read and discussed about all of the reasons on the list above many, many times but never really took the actions necessary to stamp them out. Well as part of my new patient approach I have drawn up a new list of rules that I am going to stick to rigidly.
1. Simplify my trading process.
2. Study the skills involved in becoming consistent trader.
3. Trade in a methodical way.
4. Use sound money management.
5. Only trade where the upside is significantly higher than the downside.
6. Concentrate on my method and discipline instead of my short term results.
7. Record and review my trades in as much detail as possible.
Over the coming weeks I will write a series of posts explaining the above points in more detail. When the time is right I will start trading again and discuss how I am progressing with regards to each and every point. I will post up my profit and loss figures but on a minimum of a monthly basis.
I believe that even though this YouTube video is directed at trading the financial markets, it captures the essence of what I am going to try to achieve. (All of the players in the band a extremely successful financial traders. The lead singers name is Ed Seykota who is regarded as one of the best financial traders of all time.)
I hope you enjoyed this post