I will make this post short but, hopefully, it’s insightful.
Picture a guy walking a tightrope over the Grand Canyons.
What do you think is happening in that person’s mind?
- Do you think he is thinking about falling?
- Do you think he is thinking about reaching the end of the line ASAP?
- Do you think his attention is strictly on the process of keeping his balance and staying present with each and every move he makes?
The answer is crystal clear, right? His attention has to be strictly on the process —the only thing that is in his control.
You see, a similar thing happens in trading: When we focus on the part that is in our control instead of the part that is out of our control our action becomes faithful to our goals.
✔ Your process and your behavior are things you C A N control.
✘ Whether you win or you lose in the short run, this you C A N N O T control.
If you want to build a successful trading career, you A B S O L U T E L Y have to understand this.
In fact, it’s so important that I’m going to say it again:
Focus on what you can control, instead of what you can’t control!
See, we all want to make x amount of money in the markets, but you don’t get to decide what the markets ought to give you trade after trade. And if you spend too much time focusing on the money, you never get the money.
Your process, by contrast, is something that you can control; it is the thing you focus on in order to achieve your goals of earning x amount of money in trading.
For instance, you might set an intention that you want a certain amount of money. This is your intention. You don’t know if the markets are going to give that to you, but you put the intention out there anyway. And every day, you say to yourself, “what can I do today that can set me closer to my intention?”
Then you forget the intention, you forget the money, and you strictly focus on your process.
Of course, you’re never going to consistently get the specific amount that you decide upon, but your process is going to help you get as close to it as possible.
If you want to make money in trading don’t focus on the money. Focus on your process.
When I stopped thinking about the money and started focusing on my process, my whole experience of trading changed. I suddenly realized that my wishing, hoping, wanting was actually a grotesque misuse of my time and mental energy.
Furthermore, I realized that this strategy D O E S N ‘ T W O R K !
If you focus on the money, you will obsess about every single tick; you will be inclined to check your positions every minute of the day. You will tend to take every outcome personally, and you will want to mess with your trades while they’re still on.
This is not a way to approach trading.
I’m sure you’ve been through this scenario at some point: You go through a week where you trade well; you’ve had a lot of winners so this begets confidence and, as a result, you keep doing all the right things. You’re on a roll.
But then you start getting a string of losses.
From this point there are two things that you can do:
1. What happens most of the time is that this string of losses spoils everything! Your mind starts to doubt, judge, weigh, and you start deviating from your proven process. You start thinking about the money you lost, don’t have, and need, and you lose your rules.
2. You could say, “I’m proud of myself, I’ve been following my plan to the letter. Whatever the current results, I will keep doing the right thing over what simply feels comfortable. Because I know it’s the right thing.”
By choosing this alternative, you are building the results you want and the capacity to follow your plan in good or bad times.
Again, you control your entry, your target, your stop loss, your position size –this is your proven process. You also control your behavior, so that you can follow that process.
If you want to make money in trading, don’t focus on the money. Instead, focus on those two things. These are the building blocks to achieving consistent profitability in trading.