Developing a Trading Process

By | May 10, 2016 4:36 pm

Have you seen Virat Kohli T 20 performance  in 2016: 91, 59, 117, 106, 8, 90*, 59*, 50, 8, 49, 56*, 41*, 23, 55*, 24, 82*, 89*, 75, 79, 33, 80, 100*, 14, 52, 102*. He has not achieved this due to some luck, it was the culmination of years of practice translated into a giving the best performance on consistent basis.

So how does this relate to trading? Very simply, in every profession, there is a process that hugely successful individuals repeat day in and day out. The great ones have a process that they execute almost automatically. So, if it’s the process itself that pays such huge rewards, traders should ask themselves this question, “how much time should I spend developing and honing my process?”

Let’s look at another example.Roger Feeder is considered one of the best player in Tennis.But over the years we have seen his game evolved from being a baseline player he now does many time Serve and volley,This change is strategy came after reviewing his process and how can he beat his opponent with more ease.  So review followed by process change again changed his game dramatically.

Same can be employed in trading, During my session with traders it has been observed many times a single mistake cost majority of losses.  So when we  make reviews you should  identify mistake and than take corrective steps to overcome this and take trading to next level.

Most of trader jump from one strategy to another instead of mastering one and with this they are unable to develop a process. So as a Trader you need devote yourself to at least 1 hour per day for reviewing your trading process which over a period of time will improve performance. For most traders, the majority of each work day is spent in execution or analyzing the market, following news. Instead of all this external factors which are not in your hand, Try to master internal process

  • Traders should look at the review of his trade execution
  • Emotions when doing the trade and after exiting the trade
  • Asking self directed question when taking trades
  • How to avoid doing Impulsive trades
  • How to prepare himself on being Emotionally Hijacked when trade goes against him.

Be disciplined, and trade well!

6 thoughts on “Developing a Trading Process

  1. Nitin Vardiyani

    After reading all your articles, the most important thing I’ve learned is discipline. If you can control your emotions you are halfway there. Most of the common strategies are profitable, you just need to practice and follow them strictly.

  2. soniya

    sir can u please suggest how to avoid doing Impulsive trades….even after a good profit from a certain trade in nifty i again enter and loose aall d money which i made in d first trade…this has happened to me many times in a month…there by loosing my capital..plz throw some light that where i am lagging…

    1. Bramesh Post author

      golden rule of trading is “under trade”..

      you are doing opposite ie. over trade so change your trading style by trading less results will show..

  3. nageshnk

    Simply Genius in giving examples that all of us can relate to. Over the years you have been doing this giving such wonderful examples. for three continuous months i have been in loss, yet i keep motivating that i will win one day. Today i was reviewing my trades. One common mistake is not putting 1% SL and many of the times I have taken losses from profits. I am just not getting the right way t get out of this probem Sir


Leave a Reply