Most people believe that the differences between a wildly successful trader and one that struggles are massive in size.
And although the financial income difference between the two is large, the actual differences in what they do from day to day are quite minuscule.
It's a few details here and there, and just a little better execution and timing can make all the difference in the world.
So what it really comes down to is the VERY SMALL differences in how you do things as a trader that can make the difference between a gain vs.
a loss on any given trade.
In fact I've known multiple traders who took the same exact trade at nearly the exact same time and in the same direction (long or short) and each one experience markedly different results.
One made a four figure profit.
One made a 3 figure profit.
The other lost money on it.
The well trained trader takes a trade and makes a solid profit.
Others who are not trained or have no solid plan or method take the same trade, but have poor results or less of a profit.
This is why it is so important to get your education and work with coaches/mentors.
I know that some of you out there reading this may be having a hard time in your trading right now.
You may be frustrated with your trading results.
You may be close to giving up and may be you are angry, depressed, or upset.
If you are one of those people out there who are struggling right now, then I've hopefully timed this article perfectly to give you some perspective.
First off - you are most likely CLOSER than you think.
Go back and study your trades - look closely.
Now flip the script.
What if you went the OTHER WAY? What if you used a bigger stop with smaller shares? What if you used a higher timeframe? Lower timeframe? Be Creative.
My motto for trading is 'don't get married to your bias' (in other words, get over wanting to be "RIGHT" and just "FLOW" with the market) so it's quite possible to be short a stock one minute then fully loaded on the long side 30 seconds later.
It's possible.
But it's not easy for most of us to change our minds.
To admit we were wrong, initially.
Our egos can get in the way.
You are closer than you think - all it takes is a 2mm adjustment here and there, sprinkle in a little better timing and knowing when to take different approaches to getting in the market and you can be making amazing money consistently month over month.
It's only a 2mm adjustment! It's not much and it can take you from making no money to making great money in a very quick manner...
but you have to STUDY and LEARN from your mistakes so you know what 2mm adjustments to make.
Or you can learn from a coach or mentor what those small adjustments can be for you.
Secondly - what happens to you actually happens FOR you.
If you had a bad day/week/month, then that is EXACTLY what you need to move forward.
And if you are just looking to gamble and get lucky - you will be finished at some point soon.
You can get lucky for a while but eventually the odds will catch up with you.
Third - you have to have damage control stops.
This is huge.
For example, most people that I have worked with who have come to me for help have described their tailspins into financial disaster vividly...
and you know what? Ironically they are ALL THE SAME.
So let me give you a great tip here.
Some of you may be doing this already and that is great, but if you are not, please read closely.
You MUST have stops on your trades, but more than that, you have to have a DAILY STOP.
For example, say that your maximum amount you are going to allow yourself to lose on a day is $500.
You've gone through your stats and trades and realize that a $500 loss is completely digestible by you as long as you limit it there.
So when you hit $400 in losses, then you need to make sure you share size so that if you get stopped on your next trade your losses will only hit your $500 threshold, then you SHUT IT DOWN for the day! Most people will not do this - but rather increase their risk to try to get the money back sooner.
Big mistake.
And I don't care if the market has been open for 15 minutes and you've already lost your $500.
Shut it down.
What does this do? If you force yourself to shut it down it will take the emotion out of the equation from your trades.
You (hopefully) should be able to reset after 24 hours of contemplation and reflection and review.
If not, you may want to shut it down for a few days or as long as you need to so that you come back to the market not upset, not emotional and reset to zero.
But many people will still refuse to do something so simple as put in a daily stop total on their accounts - so they naturally will have to learn the hard way...
or just not learn at all.
The consistent major thing that always destroys peoples accounts are the MASSIVE down days where they start gambling and look for revenge.
Don't succumb to that - you have to take control.
If you aren't seeing it on a certain day, shut it down and come back with fresh eyes and an education from your losses and trades for that day.
A word of caution, if you are successful in implementing the Daily stops, but then don't have the discipline to LEARN from your mistakes and make those 2mm adjustments, you will not make improvements - so take all 3 points above to HEART.
Write them down, believe in them and take action NOW!