Summary
As the trading day comes to a close, Richard Wells reflects on the importance of sticking to one’s trading plan. They ask themselves a simple question: did they trade their plan this week? If the answer is yes, they still strive for improvement in one area. If the answer is no, they dive deeper into the reasons why and begin journaling their thoughts and behaviors. Rich shares his personal experience of transitioning into a discretionary trader and the challenges they face in following his plan. Fear of losing and a lack of journaling are identified as areas for growth. The blog emphasizes the importance of self-analysis, journaling, and identifying core reasons behind trading behaviors.
Trading Your Plan: A Key to Success
When the trading day is coming to a close, it’s crucial to take a step back and evaluate one’s performance. Rich in the video emphasizes the importance of trading according to a well-defined plan. He asks himself a fundamental question: “Did I trade my plan this week?” This simple inquiry serves as a starting point for self-reflection and improvement.
If the answer is yes, Rich doesn’t let himself off the hook easily. He strives to find one area where they can seek small improvements. This dedication to continuous growth and refinement is an essential characteristic of successful traders. By identifying specific areas for improvement, they can take actionable steps to implement changes and enhance their trading strategy.
The Importance of Journaling
If the answer to the question is no, Rich understands that there is work to be done. He emphasizes the importance of asking why, why, why. By delving deeper into the reasons behind not trading according to the plan, traders can uncover underlying issues that hinder their success.
There could be various reasons for not following the plan. It could be the allure of chasing money, the fear of losing, or an overly aggressive approach. The key is to identify the core reason for deviating from the plan. It could be as simple as enjoying playing on the computer or being preoccupied with other responsibilities. Understanding the underlying reasons is crucial for overcoming these obstacles and improving as a trader.
Journaling is an effective tool for self-reflection and improvement. Richard encourages traders to find a notepad, spreadsheet, or any suitable method of recording their thoughts and behaviors. By documenting the reasons for not trading according to the plan, traders can bring attention to their actions and uncover patterns.
Personal Experience and Growth Opportunities
Mr. Wells shares his personal experience as he transitions into becoming a discretionary trader. He explains that while he has successfully traded his mechanical setups as planned, his discretionary trades have been lacking. He admits that he has not filled in a single trade on his discretionary plays, highlighting a blind spot in his trading approach.
He draws a parallel to the movie “The Blind Side” to emphasize the importance of identifying blind spots and growth opportunities. By journaling these trades and analyzing his decision-making process, Rich aims to make discretionary trading his main trading activity. He reflects on his progress in a bootcamp account and express concern about the lack of data and information that could help him compound their success.
Richard identifies fear as the underlying problem. His fear of losing the gains he has made due to his beautiful equity curve. This fear hinders his ability to size up his positions and fully capitalize on his success. He recognizes that the fear comes from a deeper place and acknowledge that his job as a trader is to find and address the core reasons behind this fear.
Journaling plays a vital role in understanding and fixing behavioral patterns. By consistently documenting his thoughts and actions, Rich believes he can overcome his fear and make significant progress. The key is to identify the underlying reasons, journal around them, and develop strategies to overcome them.
A Call to Action and Gratitude
To conclude the video, Richard Wells leaves the audience with a powerful message. He reminds viewers to subscribe to their channel and hit the thumbs-up button. This call to action is a testament to their passion for sharing valuable insights and building a supportive community.
Rich expresses deep gratitude for the audience’s presence and support. He acknowledges that without an engaged audience, there would be no platform to share his knowledge and experiences. His appreciation for the viewers’ commitment and encouragement is evident, and his expresses his excitement for continuing the journey together.
