An important part of building your portfolio is to focus on the actual process and not the trade results. At every odd or end of the market is a human, even the computers are run by people in a building somewhere. So a logical and analytical approach isn’t always a good one. In fact, this can leave one tunnel visioned on the results, which are ultimately your end game.
- focus on the entire trading process from start to finish
- After seeing low momentum in the move upwards, strong selling action took place
- When you see a strong thrust out of the range, you look to initiate a short at the close
“During my communications with new traders, many times they judge performance by a handful of trades. If the system or method has piled on the winners, they credit the system and they credit their own trading ability.”