This is something I was telling clients earlier. As it contains no exact look at the processes … I think it’s something that we can talk about today.
Are you willing … to grind it out?
In any skill-based pursuit, you must be willing to ‘grind it out’ to achieve superior results. Whether you are trading the markets, training at the gym, attempting to learn a language, or play a musical instrument … you must be willing to spend hours and hours and days and weeks and months; just working at your craft.
There are no shortcuts.
I find that many are not willing to persevere. They lack the endurance to sit through flat periods. The weeks, and perhaps months of putting on trades, with little in the way of results.
As many of you know, I’m a big one for record-keeping. Because if you know how you are performing, you will understand what may need attention, and what is occurring within your book. It speaks of even the style of trading with which one is engaged.
If you don’t know your records, you are flying blind.
So let’s look at my short-term FX trading records, because I think this imparts some vital lessons. Especially about the type of trading I am demonstrating.
These numbers go back to August 20th, 2015.
Why August 20, 2015? Why such an odd date?
I look at short-term trades, in blocks of 30 trades. That’s the ‘tiniest‘ measure of performance, that I allow myself to look at with any sort of critical eye. Of course I look at smaller ‘sets’ of trades. But if I’m going to look at how I am performing ‘overall’ ? Then I look at the trades … in blocks of 30. And on August 20th, 2015, I began a new set. Thus, why I’m going back to sort of an odd date.
So, Since August 20, 2015 …
Hit Rate: 53.70% Accurate
1 Risk to 1.7890 Reward
Average Trade Lasts: 21.84 hours (from the time the trade is triggered with the order entry. That’s when the clock starts)
I began my second set, around October. Since that time, I have had 26 trades and so I’m approaching my second set of 30 trades. And my stats on that particular iteration is …
Hit Rate: 48.08% Accurate
1 Risk to 0.7751 Reward
Average Trade Lasts: 35.04 hours (from the time the trade is triggered with the order entry. That’s when the clock starts)
And thus, on only that set, my performance looks like …
So the charts and stats tell you what’s starting to happen. My trades are becoming longer. I’m basically flat to slightly down period, but managing it.
This … is what we call “The Grind“. Continuing to put on trades week after week, not knowing which trade will work it’s way through my risk-overlay and process and begin to run. Personally, I enjoy doing this, because I enjoy trading. But most new traders shy away from this style of trading, because it does require you be willing to grind it out.
As I too, am from Detroit, I appreciated the following …