Did you know that doubling $1,000 just ten times will give you nearly $1,000,000?
Hard to believe, isn’t it? Do the sums, it’s true!
Whether your goal is to make $1,000,000 a year, or $1,000,000 over your career as a trader, either way, the thought of making $1,000,000 from trading feels tangible and possible when you break it down in such a simple way.
Taking our focus off the dollars, and focusing on the process instead for a moment, what processes and skills do you need to reach that $1,000,000 mark?
In his book Awaken the Giant Within Tony Robbins introduces us to ‘CANI’ – an acronym for “constant and never-ending improvement”.
Making consistent, small changes to your life is often more effective than trying to change everything at once.
This too, is true in your trading.
But how can you fix something if you don’t know what’s broken?
At Safety in the Market, we suggest you start by measuring your results.
This can be as simple as keeping a ‘ScoreCard’ to keep track of your Net Profits and Net Losses on a month by month basis, or comparing your next 10 trades with the last 10 trades and looking for ways to tweak your processes along the way.
Perhaps you need to undertake better analysis prior to entering a trade? Maybe you need to manage your risk better or maybe you need to improve the execution of your trades with tighter entry points and better stop loss management?
There are so many variables in trading but you can’t improve what you don’t measure. Once you have a record of your trades, you have a tangible baseline to work with which will help you identify areas you might need to improve on in your trading.
In addition, we also suggest to our students to keep a Trading Journal.
A Trading Journal is just simply a diary of their own personal trading journey. In it they diarise their emotions as they take a trade, decisions they made, and perhaps any anxieties they might be feeling as the trade unfolds.
A trading journal may highlight that they are entering a trade based on FOMO, and not on solid analysis. It may also highlight any errors in judgement, risk management or discipline in their process of trading.
Over time, being consistent in keeping up a trading journal will help to highlight any patterns that might be present in your approach to trading, or any self sabotaging emotions and behaviours that you might need to be aware of in your lead up to trading.
Some journaling prompts that might be useful include:
- What did I do well?
- What can I improve? What tripped me up in my trading today?
- What’s the next action I can take to make that improvement?
- Did I have clear focus and if not, why not?
- What practical things can I do today to prepare for trading tomorrow?
Like the $1,000 doubled ten times example above, we suggest to our students just to break down their trading and focus on doubling their account – whatever that next increment might be. When starting out, there’s no need to set yourself the mammoth goal of earning a million dollars in one day. Just make a commitment to constant and never-ending improvement (CANI).
The tweaks to your skills and habits, self control and confidence you can build just by focusing on doubling your account will have a cumulative effect.
Over time, these small step by step changes and improvements compound to produce extraordinary results.
Sick of not getting the results you want from your trading?
Our Trading Plan Tune Up is just what you need.
This Trading Plan Tune Up has been created based on the underlying principles we teach here at Safety in the Market.
Broken down into bite sized modules, in this three hour online introductory course, here’s what you’ll learn:
- Why it’s so important to have a Trading Plan and how it will give you the focus, clarity and confidence you need to be able to escalate your trading returns
- We will guide you through the steps to develop your own effective Trading Plan and you’ll be privy to the exact Trading Plan our students use.
- You’ll learn why the Reward to Risk Ratio of your trades is so important, how to calculate it and how to use it to give you the exact entry and exit points of your trades
- You’ll learn how our students aim for, and achieve 10 to 1 or greater returns on their trades – safely, while using the market’s money and protecting their capital.
As an extra bonus,
- we will introduce you to the basics of Price Forecasting (yes it is possible!)
Ready to tweak your results and learn how to trade the Smart Way?
For a limited time you can request a copy of our Trading Plan Tune Up for free. Simply click the button below.
