Creating structure and process flow helps you stay focused.
In absence of structure mind tend to wonder all over the place. Monday they get excited by stocks near 52 week high. Tuesday they read somewhere it is best to buy 52 week high. Wednesday they like all time high. Thursday they like low priced stock. Friday they like high priced stocks. Every Saturday and Sunday they have some new new insight.
This kind of behavior is symptom of lack of structural understanding of the market. Structural phenomenon in market do not change easily.
Some of the well researched and known structural phenomenon in Stocks react to surprisingly good or bad earnings is structural phenomenon. Neglected stock make big moves when catalyst shows up. Stocks move in direction of range expansion. Range contraction resolves in range expansion.
Structural phenomenon like these do not change. They have persisted for hundreds of years and will persist throughout your life time. When you own up one of these structural phenomenon and build trading method and process around it you will find better success and less stress.
You can be a discretionary trader and still have a very systematic thinking process to arrive at decision. You do not have to be mechanical trader to have structure and process.
In absence of processes and structure your mind gets occupied by whatever is readily available. It becomes susceptible to improvise on the fly. It gets influenced by success or failure of a trade. It flirts from ideas to ideas.
Put a process and methodical framework around your trading. It helps you stay focused and helps you stay within self imposed boundaries. There is some sacrifice involved in this. You do not need to trade all structural phenomenon. You need to make conscious decision about time frame you want to trade and the structural edge you want to focus on.
In trading there are so many temptation, there is environmental noise , there is constantly changing market and complexity. The complexity kills many budding traders. That is where structured, formatted and regimented approach is what is needed.
For example I have a very regimented approach for after hours analysis and it stays same for days, same thing for pre market analysis. Similarly during the trading day there is a set regimented routine. Lot of thinking has gone in to designing that regiment and I do not make changes to it for the sake of changes.
If you want to get focused start by putting a process and structure around your trading.
Structural phenomenon like these do not change. They have persisted for hundreds of years and will persist throughout your life time. When you own up one of these structural phenomenon and build trading method and process around it you will find better success and less stress.
You can be a discretionary trader and still have a very systematic thinking process to arrive at decision. You do not have to be mechanical trader to have structure and process.
In absence of processes and structure your mind gets occupied by whatever is readily available. It becomes susceptible to improvise on the fly. It gets influenced by success or failure of a trade. It flirts from ideas to ideas.
Put a process and methodical framework around your trading. It helps you stay focused and helps you stay within self imposed boundaries. There is some sacrifice involved in this. You do not need to trade all structural phenomenon. You need to make conscious decision about time frame you want to trade and the structural edge you want to focus on.
In trading there are so many temptation, there is environmental noise , there is constantly changing market and complexity. The complexity kills many budding traders. That is where structured, formatted and regimented approach is what is needed.
For example I have a very regimented approach for after hours analysis and it stays same for days, same thing for pre market analysis. Similarly during the trading day there is a set regimented routine. Lot of thinking has gone in to designing that regiment and I do not make changes to it for the sake of changes.
If you want to get focused start by putting a process and structure around your trading.
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