Trading is not an easy game to play.

Success is all about having the laws of probability work in your favor.

While this is easily understood logically, it is very difficult to wrap one’s brain around emotionally.

You see…

Even if you can play the game at an elite level, you will still lose a good chunk of the time!

That can be very demoralizing for the psyche.

The solution?

You have to stop attaching to the short-term outcome and focus more on the process.

This applies to positive emotions too!

A winning trade is usually nothing more than good luck.

It is the summation of all the wins and losses for a long period that determines where one’s trading is truly at.

This may make sense in theory…..but the practical application is much more difficult!

The best solution that I’ve found to tame the thoughts is a trading journal…

Start writing down everything that’s happening during a trade. 

I’m not just talking end result here.

Most of it should be devoted to the process…

The initial game plan, why the trade was taken, the reason for the exit, etc.

If you want to maximize the impact of the journal, then I would recommend jotting down the emotions going on at the time as well. 

This one can be a bit tricky to get down at first given how quickly emotional states change…

But it will become second nature over time!

That’s all for now.

See You Soon,

-Damian