“The minute you get away from the fundamentals -
whether it is proper technique, work ethic,
or mental preparation -
the bottom can fall out of your game.”
Michael Jordan
Given that trading often takes many years for most people to learn and master (without the right information and instruction), you can reasonably assume that it is a complex art. What is not often understood is that even though trading can obviously be complex, it doesn’t (for me at least) require multi-tasking.
The common wisdom from experienced traders is that you should know what to do at each point during a trade prior to opening the trade.
This is a very important principle and something that should be etched into your brain.
What is a lesser known truth (because I made it up) is that you can and should try to only focus on one thing at a time during a trade. A good example of this is that after entering into a trade, my system involves a single focus on removing the risk in the trade.
The risk is removed in two steps, and once removed, then I am able to move my focus onto more fun and interesting things like managing my profit.
I have found it an important component of my system to have a singular focus at all points within a trade, because it is so easy to become distracted by other considerations and then become too overwhelmed to execute our plan in the way we intend.
Implicit in becoming distracted by shiny things whilst in a trade is the idea that risk isn’t the most important consideration in all of trading.
Let me burst that bubble right now.
Trading for me is pretty much 99% about the management of risk, and the other 1% really doesn’t matter that much. Okay maybe i am exaggerating.
Seriously though, get your head in the game and focus only on what is important in that moment!!!
It is such an important strategic consideration i cannot emphasise it enough.
