Our theory is, that once you have developed a sound trading methodology along with a solid money management component, all you have to do is have the discipline to follow the plan and success will be a byproduct. Sounds simple enough, but to borrow a phrase from veteran trader Dave Landry, following the plan is “the hardest easiest thing you’ll ever do.”
If you have the privilege of sitting near your quote screen most of the day, be careful! Those pretty flashing lights tend to raise your adrenaline level and quiet frankly your stupidity level. As a younger trader, I would constantly mark my real-time trading portfolio performance with that of the market performance on a daily, or sometimes hourly basis and it led to many rash trading decisions and trading mistakes.
What we have to remember is, that no matter how carefully we lay out each trade, stocks ultimately trade on their own individual time frames. There may be days when the market scores a big day and your portfolio is flat, or even worse. When this happens I would suggest that when the markets close and all is quiet, that you consult your charts and review each trade. If the trade was placed properly according to your methodology and your stop loss is in place, enjoy the rest of the evening with your loved ones and perhaps tomorrow you will find that it is your day to outperform the market.
Just remember, that trading is a process and it requires a certain amount of patience to see that process play out. No matter how sound your approach or how well you trade your system, your equity will fluctuate and occasional drawdowns are inevitable. However, I think you will find that if you stop hawking your equity hour by hour and day by day and just focus on the process following your methodology with discipline, you will look up end of the month or quarter to find that your equity balance has taken care of itself.
CJ Agresta, Trust The Process Trading