In December I challenged myself to not post any of the trades and not look at the daily or weekly P&L. I did it because I wanted to focus on trading well by following my trading strategy.
The truth is, it’s harder to stick to the 3R target than it seems. It’s challenging to kick an old habit of taking profits in the support area of 1.8R. If I make most of my profits at 1.8 and take the rest at 3, the average will be somewhat close to 2R. But in the long-term, that won’t leave enough room to cover for the mistakes, and I know that I will make mistakes no matter how successful and consistent I am.
I’ve talked with experienced traders such as Kyle Williams, Brian Lee, Jack Kellogg - do check their interviews if you haven’t yet - and all of them say that mistakes happen. You just have to make sure that they don’t happen too often and not let them spiral out of control. At the same time, you have to learn how to not take your profits too soon. If one mistake wipes out 3 or 4 profits, that could crush your mindset. If one mistake erases 1 profit, it doesn’t feel like that big of a deal.
So this week I did a better job waiting to hit 2.8-3R, and I’ll continue with this strategy. I will also be focusing on Big Cap markets. Looking forward to that and the added challenge of managing my time as I start a new job - watch the video to learn more about that!
