Feedback from a recent article has been so incredibly positive, with a number of emails coming through saying that this was EXACTLY what these people needed to hear right now. It seems one of the most popular articles of the last 12 months.
Check it out here if you missed it – Are You Closer To Profitability Than You Thought?
So let’s explore an idea expressed in my favourite line of the article.
And that’s the following:
- “… right now it’s time to end the mediocrity. It’s time to fight to get to the next level.”
There are various levels to pass through on the way to consistent and increasing profitability.
For most of us, there are no short cuts!
There are no Game Cheats that can jump you straight to the end goal.
It’s a step by step process of growth and development.
Progress will be slowed (or completely non-existent) if you’re plan for progression is unstructured and random.
Here’s how to provide some structure.
(1) Find where you currently reside on the above pathway.
Look at results over a recent sample of trades. What you did three years ago is irrelevant. We want to see what you’re achieving NOW.
Take a recent sample… 20 trades minimum. And look at the P&L. Where does that place you on the above pathway? (Note: the sample chosen must also represent “typical” current results. If you fluked a massive winner through poor practice (and if you’re honest with yourself you’ll know if you did that) then exclude that trade. You’ll only be cheating yourself if you include it.)
Wherever you are… accept it. There’s no point denying it. This is your starting place. You build from here.
(2) Determine the Win%, Loss%, Average Win and Average Loss stats for your most recent trades (20 trade group… minimum).
If you don’t have sufficient stats to determine these… you need to keep better stats. Start again with a new 20 trade group and keep better stats.
(3) Identify the next level you hope to achieve.
This is the very next level on the list. It’s not the end point.
There is no point aiming for $100,000 days if you can’t consistently achieve breakeven.
Identify the next level.
(4) Determine how your step (2) stats will need to change in order to place you within the next level of the pathway.
This may require improvement to one particular statistic. It may require improvement to multiple stats.
Expectancy = (Win% x Average Win) – (Loss% x Average Loss)
What needs to improve? By how much? And remember… we’re just targeting the NEXT level on the pathway.
If you have multiple stats failing to achieve required targets, pick one to focus on first.
(5) Immerse yourself into a review of the trades making up your most recent sample, to identify the reasons for failing to achieve the required statistical outcome, and the changes necessary to take you to that next level.
Do you need to change something in strategy? In your processes, procedures or routines? In your level of knowledge? In your level of skill? In your mindset? In the attitude to which you approach the game?
You have almost complete freedom to change your business in any way you need. So you MUST keep this structured. Focus ONLY on that which will help you bridge the gap from where you are now to where you need to be at the next level.
Can you add something to your business?
Can you improve something?
Or do you need to subtract something, as we talked about in the previous article.
(6) Implement the changes and apply them as you trade your next group of trades (20 trade group… minimum).
You know what you’ve got to do.
Now do it.
(7) Repeat
Back to step 1. What level are we at? Where is the next level? How close are we? What do we need to do to get to that next level?
Progression comes through filling the gap between where you are now and where you want to be next. The key is to make “where you want to be next” close… just the next level.
Don’t try to jump straight to the end goal.
Every step up the ladder is a fight.
Some may come easily. Most won’t.
But you can’t shortcut the process.
And in fact you reasonably need to expect that some levels of advancement will require MULTIPLE attempts before you can stick there with some consistency.
You need to learn to walk before you can run with the professionals. And learning to walk will involve falling down many times. Get back up. Keep walking.
If you want this, you’ve got to fight to get to the next level.
This is the ONLY way I know of to get to the ultimate goal of consistent success as a professional trader.
Get started today… step 1.
You can do it!
Happy trading,
Lance Beggs