This 5 steps system is an approach that has a 99% success rate on a long-term basis. The process of continuous optimization is a great combination which allows people to become aware and improve as a trader. So if you are really committed don’t read the post and forget it . Promise me and yourself that you will execute what you learn.

PLAN

In this moment you should have a predefined potential edge criteria: your goal is to find opportunities in the same approach . You need to find a predefined and specific time frame that suits to you and your trader profile. By other side you need to have predefined risk management , market conditions, entry criteria’s to get flawless executions , exit criteria’s and a profit taken system. for more about how to build a trading plan , I will drop below a previous post in which I deeply explain how to do it.

EXECUTION

In this phase, you need to get confidence to execute and apply your previous potential plan. You need to build discipline to follow it. If you want to get consistent profit extraction in a calm state of mind from the market, you must build a strong confidence in you plan in order to execute. No hesitations. Those who make it in this business were strongly confidents. they made a decision to either figure it out or die trying. They have burned the bridges. Victory or death.

JOURNAL

Without ABC’S, you can’t create words.
Without the words, there are no sentences.
Without sentences, no paragraphs.
No paragraphs, no story.
No story , then no idea what’s going on.
No idea what’s going on= GAMBLING.

If you don’t collect data , you won’t be able to collect data from your mistakes= you will continue to gamble and repeat the mistakes. A mistake repeated more than once is a decision made by the unawareness

ANALYZE

Your goal here is to understand your perception about the market, perhaps your system and plans are profitable in the long-term. maybe your trading errors are mental perception of fake neuro-associative conditions. If your goal is to trade like a professional and be a consistent winner, then you must start from the premise that the solutions are in your mind and not in the market. In that way a study of the risk is a study of yourself. You must analyze the way you find good deals , the way you execute those good deals and the way you let those deals play out.

OPTIMIZE

Do more with less of your resources.
Think fast and think slow at the same time.
Optimization process in trading should be taken from another perspective. Instead of trying to optimize the ”holy grail” you should improve your mental game.
Trading is a mental game, and the more you trade, the more you will realize it, and the more you will believe in its importance. We haven’t even begun to scratch the surface of the psychology of trading, yet most traders would rather focus on which time-frame to execute… what indicators to apply, or do I place the trend line on the wicks or the bodies…. All these questions are completely useless and irrelevant if you have a flawed psychological foundation. It will only frustrate you further when you still can’t seem to find consistent profitability. All the analysis and analytical tools in the world will not fix a weak psychology. Instead of trying to improve the plan , try to improve yourself applying the previous plan .