Yet again the mentoring programme continues to deliver results. Here is an excerpt from an email I got a few weeks back from Paul, who is a trader based in Scotland:
“I am pleased with how everything is going, mainly my attitude towards trading. Since I started I've made numerous mistakes which is what I expected as I adjusted to the new system. I forced trades on sub-par setups when there was no need to do so.
At the moment my open profits are quite good and my challenge at the moment is doing nothing while I let them play out. The good news is that I can take small losses without a flinch now and I'll approach every trade with the mindset that:
"it will probably fail, but I'll catch a trend at some point this year......maybe"
which is perfect for this way of trading I think.
In summary; everything has been great so far. Thanks for all your input so far and I'm looking forward to the coming years!”
Part of the changes Paul has made included switching from day trading to trading longer-term, which he was able to fit in a lot better rounding his existing home and work commitments. On that basis alone, trend following is a much compatible method for him.
Recently Paul closed his first big winner, on a short position in a UK stock which yielded a +9R profit (see below).
You always want to be the worst trader you can be at the start. Ideally you then want to make small continual progress all three main areas of trading - your method, risk control and your mindset.
Sometimes though you need to re-set things. I did this early on in my own trading career when I switched from day trading to a longer timeframe, which suited me and my personality far better. Paul has gone through the same process.
With a clear understanding of the basics (method, risk and psychology), allied to a far more compatible timeframe to trade, the foundations for progress are now in place. From his comments, Paul is also learning the patience and discipline required to wait for the best setups for him to trade. Combine all of this with the determination and commitment to improve, Paul is on the right path to long-term success.
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