One day and one trade

The challenge in trading comes down to doing the right thing everyday, controlling risk everyday, not getting carried away everyday , and putting a bit of effort everyday to develop new skills and expertise. If you do that successfully everyday in a year it adds up.

Same thing applies to each trade. Each trade stands on its own and the past does not matter. If you do each trade right then over hundreds of trades things add up. Getting stock selection right on each trade, getting entry, exit , stops, position size right on each trade is the day to day challenge of trading.

Controlling the controllable part of trading is where we must put our effort as traders. We do not completely control the outcome of a trade, it depends on number of factors outside our control. Wars can suddenly breakout. Companies can pre announce bad earnings after we enter. Analyst can upgrade or downgrade a stock. But that is all not our control. We must strive to do the controllable things right on each trade.

Everyday do the same thing over and over again on each trade the right way. Once you have a well thought out method this becomes easier task. After that the  the day to day challenge is largely about implementing your plan. That requires setting up a daily routine and adhering to it as far as possible.

But we do not need to do same thing again and again blindly irrespective of market conditions.  We know our swing setups work, but overall market conditions can have impact on the % of trades likely to work. So situational Awareness (SA) is important. It helps you in controlling your trade pace. In good environment you want to be more aggressive. In bad conditions you want to focus on risk management.

SA also helps you tactically change your entries, or exits or profit target. If market is range bound you do not expect big moves accordingly your target must change.

SA also helps you to understand market phases. Different phases of market favor different kind of stocks or setups. Some time beaten down stocks do well. Sometime stocks with momentum do well. Some time value or growth is in favor. Knowing what is working helps you focus on hot opportunities.

If you want to make lot of money trading focus on one day and one trade....

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