How to improve execution after having a trading system?
1. I will quantify all the trading details.
A friend of mine who has been trading for five or six years draws a few lines on the MT4 of his mobile phone every time he trades, finds the high and low points, determines the direction and makes a callback, goes short if it rises too much, and goes long if it falls too much.
He often complains to me that gold was originally bullish, but he became short while doing it. If he sticks to his own analysis and insists on going long, he can make 3,000 US dollars, but he loses 2,000 by going short, and loses 5,000 by going up and down, which is very uncomfortable.
In fact, he can't talk about the problem of execution here, because he doesn't even have basic trading rules, but only has a basic judgment of the market. When to enter the market, how to stop loss if wrong, how to stop profit if right, there is no unified standard, everything is based on feeling, then it's over.
2. It is very necessary to keep transaction records and review records.
The two most important things I did when I turned from loss to profit were to keep transaction records + review.
When you record your daily trading process, including today's opening and closing positions, psychological changes, market conditions, etc., you will clearly see why you lose money and what bad habits you need to correct.
Reviewing is to increase your trading confidence. After the trading strategy is established, it must be tested.
3. Establish a punishment mechanism for yourself.
The world of trading is very free, just like losing weight, it all depends on self-discipline.
When others are messing around, you have rules. When others are letting themselves go, you are self-disciplined. Trading is also a zero-sum world. Money flows from one person's pocket to another's pocket. As long as you do better than others, money will tend to you. This reality is so cruel.
4. The trading system should be streamlined, and some automated tools can be used, and the position should also be lowered.
The more perfect the trading system, the better, and the more streamlined the better, because a simple trading system is easier to execute, and there will not be too many complicated conditions that require laborious screening, but the details still need to be perfected, don't put the cart before the horse.
