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The Homerun Mentality

Sometimes it gets redundant to say this but we all as traders/investors seek to find that perfect trade. That one that will make us rich. Is that the right approach? Well the answer isn’t so simple. Let me explain. Looking for the perfect trade should be a priority regardless of a short or long term move. The issue is understanding what your strategy is and implementing it. The second part is discipline to know when to take profits off the table before the tides turn and you slowly watch your account go into a death spiral.
The important thing we tend to forget is when you trade any market, you need a strategy. One that is simple and straightforward. We tend to deviate sometimes and go balls to the wall when there is no reason to do so. In terms of futures, my profit target is between .75 and one point per trade when I’m trading my short term strategy. When I trade on a slightly longer term which can be 30 minutes or more out, then I will look for 1-2 points. Having said that there are times where I kick myself in the ass watching it go more in the money and Ive already sold off. But screw it. Because once you start saying next time ill hold on and make a killer trade and get rich, just remember that’s the same mentality that will blow you out of the water. Stick t[o y[our profit targets and build up those base hits. They add up and consistency is the name of the game.
And on that note lets talk discipline. I cant stress enough how important this is. The more disciplined you stay as a trader the more consistent you’ll get. We all want a huge trade and boast about it. But that wont get us anywhere. No one makes those every damn day. If you get a bit of luck and a good entry and pull one off then great! Just don’t seek them every time. Develop trades and know your end game. Simple is key and never over trade.
Do your research and find out what times are best to trade your particular strategy for optimal results. And use the down times to back test and assess and your past trades. Always learn and better yourself! Happy trading!

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