As we start a new year there are many that will be excited to make this the year that they make huge profits in the market. Maybe it's with a new strategy or maybe you have read some of our other articles and are considering a different risk based approach. Whatever your goals are this year I want to take a moment to make sure you don't get distracted, and hone in on what could be your secret sauce.
When a trader touts his secret sauce it is indeed just like a chef not wanting to give away the ingredients in his sauce. The problem is so many of us are deviating from what makes our strategy successful. We have the best of intentions to focus on our plan and move towards the path of profits, but from time to time find ourselves trying to tweak the secret sauce.
Here's the thing, there is a time for trying to improve on your plan and then there is a time to just plow forward with what you have. Just like in golf, the old saying is to stick with the game you brought to the course. Making changes to your swing mid-round usually spell disaster.
So here are a few things you can do to keep on track. First, remember that your strategy, no strategy works everyday. When you have a rough day just shake it off, knowing that odds move against and for your strategy. Don't change a thing.
Next, do not try and tweak your strategy in the middle of a trading session. Execute just as you had planned but keep a note or two of how you may be able to improve. When the markets are closed and you are relax, take a look at those notes and see if you can find good reason to adjust your strategy.
Finally, rather than tweak your secret sauce, consider creating a whole new sauce. If you really want to, develop a whole new strategy and test it out separately for a while. Maybe in a separate account or in simulator mode.