6. Finding your perfect method
Could it be that one of the reasons you’re not yet consistently profitable is that your method just isn’t right for you? Here’s some trading advice for struggling traders on the subject of trading methodology.
Its often an incredible relief to a struggling trader to discover that a big cause of their trading challenges isn’t because there is something wrong with them - it’s because they aren’t being true to their own nature in their choice of methodology.
Many struggling traders I’ve spoken to over the years have had huge breakthroughs when they stopped trying to fit themselves to a system that they thought they should be trading and instead found a system that fit their makeup.
Getting your method on, is like fitting yourself for a custom suit. The tailor needs to know your leg and chest measurements and of course such vital information as which side your balls hang (sorry ladies!).
Given that your method is going to be in constant use, doesn’t it make sense to take the full measure of yourself before you start sizing it up? Especially if you are going to spend money buying a methodology or attending a course.
As traders we are definitely not all alike. Thank God! :o) Some people have very sharp minds and can make split second decisions. Some people like to take more time and analyze things. Some people are cool as a cucumber under pressure and some people are highly volatile. Some people can trade full time, some part time. We come in all shapes and sizes and we need to fit our method accordingly.
The good news is that there are methods to fit all sizes. You don’t have to be a S&P ninja psycho scalper if you feel more at home swing trading wheat with astrology. And vice versa!
So what kind of questions do we need to ask? How do we assess ourselves? In his new book The Essentials of Trading , John Forman does a great job of explaining how to go about exactly this. You can read about it in his recent blog postings .
Next blog post: The ‘Missing Ingredient’ that everyone needs to know about in chosing a method
Are you looking for a consistently profitable trading system? Check out our preferred cycle trading system:
