Trading Reports

How Developing a Process Changed my Trading Performance


Below is the mantra I continually say to myself regarding my trading...

Follow the Process
Execute the Process
Better the Process
Better the Execution
Repeat.

Of course, before you can say that mantra you must first have a process. Few understand the importance of a process and fewer yet work on developing and improving their process.

I always wanted to understand the why behind things. I don't know if you're the same, but when someone told me to do something I wanted to know 'why'. Whether the other person interprets this as good curiosity or just plain irritating is up to them. It didn't help too much when I was in Royal Marine training (medically discharged due to reoccurring shoulder dislocations).

I found this with my golf swing as well (I got down to +5 handicap). It was important for me to understand the why. The cause and effect relationship between what my swing did and the outcome ... i.e., where the ball went.

I think this is important in stock trading. Understanding the why. Why do things happen the way the did. Why did your process provide the result it did.

When you start to understand the why, we can move onto the how.

How can I improve my process to provide this result instead of that result. Of course, trading is a game of probabilities. However, we can start to move the probabilities in our favour by understanding the why and how of a process and the workings of the stock market.

My trading results dramatically improved when I developed a repeatable process (just like a repeatable golf swing) and started working to perfect it everyday.

I would encourage you to start developing a repeatable process that revolves around specific entry criteria.

Here's to developing a process.