(Video) Screencast: The Importance of Focusing on Your Process Execution and the Objective Trade and Day Grading Tool

Screencast Video and downloadable, customizable Objective Trade and Day Grading Tool can be found below.

This screencast is a follow-up to a previous post that I wrote titled Boost Your Trading Performance by Objectively Grading Trades and Days. In that post, I discuss the importance of judging (and grading) each trade that you take and each day that you’re active in the market based not on the P&L outcome, but instead, on your execution of process. As communicated in the post, we can’t control when we get paid, but we can control how well we execute our process. Most of what’s contained in that post lines up with the content in the following screencast and tool, but there are a few differences. These differences include:

  1. The fact that there’s an actual tool to download and use (below) for personal use (this previously wasn’t available).
  2. The styling of the tool has been improved upon in the tool available to download as well as in the screencast, compared to the style of the tool in the previous post’s screenshots.
  3. The total number of potential points for the trade grading scale has increased in the tool available for download as well as in the screencast from 45 points (as seen in the previous post) to 50 points.
  4. Other minor differences.

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(Video) Screencast: The Importance of Protecting Your Trading Mindset, Psychological & Emotional Diversification, and the Life Balance Tool

Protect Your Mindset at All Costs

The most important (and often overlooked) concept in trading is the following: Your mindset will ultimately be the deciding factor in whether you succeed or fail as a trader.

Think of it this way: Traders do not ultimately fail due to blown up accounts – they can save their money and start a new account (as most successful professional traders have done, sometimes multiple times). Traders ultimately fail due to experiencing a fatal blow to their mindset. Once your mindset is severely damaged, it can be next to impossible to find the strength and courage to continue persevering towards your original goal of being a successful trader. It is for this reason that you must do all that you can do to minimize the possibility of experiencing a fatal blow to your mindset if you want to be a part of the minority of successful traders by proactively developing a strategy to strengthen and protect your mindset. Continue reading

3 Highly Effective Ways to Help Scale Up Trade Size and the Position Sizing Tool

A link to view and download my Position Sizing Tool Google Sheet can be found at the end of section #1: Measure Risk in R-Multiples.

One common trading hurdle that I see with several traders (even some who are highly followed on Twitter with booming subscription services and chat rooms) is their difficulty in scaling up trade size once they feel that they are in a position to do so. This is something that can be overcome fairly easily by making just three changes to your methodology: Continue reading

Trading Return on Risk Projection Tool

A link to view and download my Return on Risk Projection Tool Google Sheet can be found at the end of this post.

I talk on Twitter about the importance of defining 1R (your static risk on every trade) as part of your trading methodology. When you keep your risk static on every trade, you significantly decrease the chances of destroying your account via a drawdown or even a few disastrous trades.

All too often, traders are focused on their win rate. However, as the following table illustrates, win rate should always come second to Return on Risk. Continue reading