…So a follower asked
me today: “How did you trade today? Were
you profitable?”
My gut reaction was to respond with a yes or no answer, but
after a moment I realized how quick traders are to fall into a trap. Let me
explain:
The initial part of the question asks how I traded
today. A good trading day is one in
which I follow my well thought out and researched trade plan. This includes all setups, entries, and
specific exit strategies. This plan is
100% formulated before the trade is placed each and every time. There is not a situation in which I do not
know how the trade will go, it is a finite series of “if – then”
statements. I may not know which path of
“if – then” statements will be executed, but do know the probabilities of each
one. The plan is researched to the
degree that I know, statistically, what percentage of these trades will be
profitable, IF AND ONLY IF the trade plan researched and documented is followed
to the letter. Any deviation throws all
the research and likely the entire plan out the window. We should never be figuring out a trade plan
while trading, this is too late! So the
question of how I traded is answered by how well I followed my plan, not if
they were profitable or not. So if the
researched and documented trade plan is deemed to be profitable over some
period of time then the question of profitability after one or two trades or
one or two days is moot because I know if I follow my plan that there is a high
likelihood that profits will be the inevitable outcome.
So to answer the follower’s questions:
“I traded excellent
today, thank you!” ;)
Good Trades,
Trader Joe
eminiedge.com
https://www.eminiedge.com/trading-blog/todays-setups-and-real-time-trade
