Trading as a Sat Nav
Hello again traders, Rishi Patel here co-founder of Master the Markets, Elite Traders Conference, and Traders Open Day.
Today, we are talking about trading as a Sat Nav. You may think is an unusual topic, or an unusual way to phrasing trading. What do we mean by this? We have to think about the concept of a Satellite Navigation device. I do not know about you; but I am one of these people that once I jump in the car, I have to key in electronically exactly where I am going to. Otherwise, I am going to get lost. I need to know with clarity where I am getting to. This is important, and I am so used to this technology and the electronics already in the car which can do that. I remember as well; back in the day, when my mom used to have what is called an A-to-Z. Some of you might even remember this, some of you may even still have one. It gave you all of London in a book, and she sometimes would look through that and find out how to get to certain places before Sat Nav was even about. Even before that; Myself and Thiru, we would do some service work with the elderly and we had the amazing privilege of meeting a guy, who was a draftsman, and made maps. My point is that, throughout time maps have always existed. There are two key things that really a Sat Nav, paper map, Google maps, or whatever it is you look at that you need on. You need to look at to main things when you are looking at a map. You need to look at where you are right now, and then you need to look at the point of where I need to be. These two things are absolutely critical to map a route out.
Why is that important to map a route out? As I said at the beginning, if I get into a car, I need to know where I am going. If I do not map out the route in the beginning, then on route I am going to get lost. I am going to be relaying on sign boards or asking people, even the fuel in the car is going to run out. I might take longer to get to where I want to be. Maybe, I will be late or miss an important engagement. Whatever it is, we need to know with clarity where we are going. It is very important to set that up before you start that journey. The other thing you do not want to do is to find out midway that you are not actually clear. This is the important thing, clarity. Why do I need to be clear? Because, the subconscious mind is working on this route even when you do not know it. The subconscious mind is probably the most powerful tool that we have available at our disposal. The reason for that is because the conscious mind can only do so much during working hours, when you are focused, and sometimes you lose focus on a task; but your subconscious mind is an incredible tool that works even when you are sleeping. If you have given it the right set of calibrations in the beginning, it is going to work even harder for you than anything else that you have. If you are clear of where you are and where you want to be all the time, then your subconscious mind will start working for you on a route of how to get there. It will do that when you are sleep, while you are awake, all the time. That is what makes it incredible.
How can we use this and apply it in trading? There are a couple of things. First, you need to have clarity on your goals, the end point on the map or where you want to be when you are done. That could include; how many pounds per month am I generating as a net bottom line profit, how much money can I keep adding to my trading account, how much money do I want to withdraw, how many trading accounts do I have, how many strategies am I trading. All this information will add up towards getting clarity on your end goal. Your end goal has to come down to something related to actual money in your pocket. Because, if you think about it, that is the goal of trading. At the end of the day, you want to be able to use these funds to do other things. So, what is the end pound goal or value amount over a period of your choosing is the end point of your map.
If you got the point of your map, then you need the starting point. Now, you need to get dead clear as to where you are now. Remember that there are to points on a map, where you want to get to and where you are now. So, if you know where you are now, the way you can track that is by looking at your strategies results, you may want to review your strategies win/loss ratio, your expectancy, reliability. These numbers, on a real time spread sheet you are going to track. Then you keep reviewing, let’s say at the end of the week, you do and overall review of all the trades that you have taken in real time and you ask yourself that question; have I hit my targets from the trades that I have put on this week? Is this getting me towards the end point of that map? If not, what can I do to adjust?
Remember; the genius thing about Sat Nav is that, even if you start driving and there is a route block, the Sat Nav automatically adjusts and provides an alternate route for you. Your subconscious mind will do the same for you, it will keep adjusting for you. But, you need to put that conscious effort to keep reviewing “where am I?” and “where do I want to be?”. If you keep asking these two questions, then you automatically find the route that you want to get to achieving your trading goals.
That is it from me for now. As we always say; stay disciplined, follow your trading plan, and keep Trading Like a Master.