SMB had a great webinar on the top five trading frustrations from their community and recommended solutions (watch the webinar and slides here). I found the webinar pretty helpful with lots of good suggestions. They are also having a new 10-week mentoring program called The DNA of Successful Trading @ $2,495.
I noted down some of the points in the webinar below:
Top Trader Frustrations
- I cannot trade my plan!
- You need to develop the skill to execute your trading plan under duress.
- Use visualization exercise to see yourself successfully executing your trading plan during the day. The greater level of detail a trader uses in their visualization exercise the greater its effectiveness.
- I cut my winning trades too early!
- Have profit targets
- Take partial profits
- Measure each day the missed profits that you could have obtained if you didn’t miss a setup, or if you didn’t cut your winning trades too early.
- I am not consistent with my trading
- Establish a playbook with setups that work for you, and setups that don’t work for you.
- Define the risk that you should take in setups based on whether they are A+, B, C setups (based on risk/reward and % win rate).
- Track the amount of risk that you are taking on similar trades, so that the results can be properly analyzed. Risk 30% of your intraday stop loss on a A+ setup, 20% on a B setup, 10% on a C setup, 5% on a Feeler trade.
- Do a trade review
- Did I trade the best stocks today?
- Did I recognize the market structure?
- Did I push myself outside the comfort zone?
- Things I did well
- Things I could improve
- I cannot find a profitable trading system
- Trading is a probability game, setups don’t work all the time, so don’t keep trying and throwing away trading setups without thoroughly testing them.
- Get exposed to lots of different setups and trade the setups that make the most sense to you and works best for you.
- I lack the confidence to take trades
- Have a detailed trading plan, place orders in advance in possible.
- Put on feeler trades with 5-10% of the risk that you normally put on. Once you start to become more comfortable you can then put on your regular trades again.