The SECRET is Compounding Tiny Objectives & Finding SatisfactionIn this video I talk about what I don't really find people talking about, which is how important it is to find satisfaction in your trading. When I say 'satisfaction', I am talking about the monetary kind. What do I mean by this?
A problem I used to have in my earlier days was over-trading, revenge trading, blowing accounts, the usual story. I even had a decently high win-rate and I was good at understanding price. What I discovered was that I was not finding satisfaction because I was not risking enough on my trades. You see.. my strategy had a high win-rate with a positive R average, but the setups did not appear that often. Not as rare as a unicorn, but still, I'd have to sit around and wait and wait and wait. By the time my setup came, I put on a small risk, and I won small. Subconsciously, I found that quite frustrating, even though I was actually winning most of my trades. You can imagine how I felt when I lost a trade. I felt like I invested all that time for nothing. One could argue that I was being careful, but the problem was I was being too careful. I age the same as everyone else, and everyone else ages the same as me. I am investing my time into this strategy, time I will never get back. If I am not utilizing my time in relation to the earning potential, then that is a bad investment. Being a psychologically prone person, I made it a serious rule that all my criteria for my setup must be hit before I take that trade, no exceptions. I kept myself on the higher timeframes so that my mental state can safely process what I needed to process, whether it was analytical or just psychological.
Another point was getting over what others were showcasing or doing. Material luxuries and large wins are all subjective things. It was frustrating seeing people trade every single day, most of them with green days. I felt like I had to do the same too to be a good trader. I was WRONG. What I actually need to do was make my system work for me, and that included how I implemented risk and what was satisfying enough for me to pursue. Like I said in the video, if what you want to do is not interesting or attractive to you, you won't want to do it. As long as what you want to do makes sense and isn't you trying to go from zero to a hundred in 2.5 seconds. As the title says, compound tiny objectives but make it satisfying in terms of risk and your time invested.
- R2F Trading
