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As a Trading Tutor, I speak to a lot of students who tell me that they knew the market was going to move, but they are frustrated that they didn’t profit from it. When we take a step back and review their analysis, nine times out of ten they have done everything right.
They have analysed the market correctly, applied the correct tools, and come up with the correct conclusion.
So how is it that the market did exactly what they thought it would do, but they have not got a cent of profit to show for it?
The most common answer is that they forgot about the trade.
To me, forgetting about a winning trade setup is similar to forgetting which bank account you have your life savings deposited in, or where you left a winning lottery ticket.
Being organised is not merely recommended for those wishing to trade for a living – it is essential. Once you have done your analysis on a chart, it doesn’t stop there. You need to keep revisiting that analysis until the trade has been triggered, entered, and exited. Only then do you forget about it.
A problem traders can have is that they look at so many markets, so many instruments, and so many charts that they forget many of the really good setups they have found.
I initially found myself experiencing the same problems. Whenever you notice yourself making a mistake, consider this a good thing – an opportunity for growth. Take a step back, isolate the problem, and then think about ways of dealing with the problem.
I found that although I have a great long term memory for dates, prices, and ranges on a market, my short term memory needs a little bit of help every now and then.
The first thing I did was to setup a calendar. Now, every time I find a setup, I write a quick note on my calendar – simply the forecast date and price of whatever I am analyzing.
Then, by checking my calendar every day, I don’t miss the important setups. It also helps you to plan your year. As a trader, if you are expecting a major top to occur on, say August 1, you wouldn’t want to be off sailing around the Greek Isles or climbing Mount Everest within a week or two either side of your forecast.
It is also important to have your charts organised. Many traders have either one chart with too many lines on it, or so many charts they can’t keep track of them all.
It is a good idea to save your charts in ProfitSource, and group them into the appropriate folders. To do this, simply setup the chart the way you want it, then click on “Action” and then “Save Chart Page As”.
For example, you may wish to have a folder for charts relating to a specific education course, or style of trading. You may break up your charts into those relating to Price Analysis and those related to Time Analysis. Or, you may wish to sort your charts into those you need to check daily and those you need to check weekly. However you choose to do this, it is important that you organize them in the way that makes it easiest for you to stay on top of them.
Chart 1 below shows how you can view these saved charts quickly and methodically, using the Navigation Tree in ProfitSource.
Chart 1
click chart for more detail
Once you have saved your charts, you can open them through the Navigation Tree, and then cycle through them quickly using the F4 key on your keyboard.
Safety in the Market Platinum Students who read Noel Campbell’s recent article on the SPI will know how important it is to check your charts frequently. Noel’s forecast was spot on, but if you weren’t checking the charts you had setup, you could have missed the trade.
Being organized in trading is probably about as exciting as strict money management – that is to say not very! But this is a business – we need to treat it like one if we are going to succeed in the long run.
Be Prepared!
Mathew Barnes
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