Let the market determine your profit or loss.

Never force things.  Let them take their own path, follow your plan in your usual detached manner and whatever the result at the end of the event will be.

Similar to my post on setting daily targets and goals, this blog entry is about letting go of preconceived ideas of profit and loss and allowing events and market action to take their natural course.  Watching your profits or losses whilst you are trading can be counter productive, particularly if you are too focused on making a certain amount to make it worth your while.

This can only lead to forcing the action, arguing with the market and departure from your plan.  Trading correctly means you must move and act in harmony with the market.  Some markets are going to suit your style perfectly - and you will position yourself well to get the most out of them when this happens. 

On other occasions, the market won't act the way you like it - and you can do nothing about this.  When this happens, continue to work properly and accept the fact that you might not make much or you might lose some.  Be flexible and be willing to retreat if it feels right to, but never argue with it - good conditions will return eventually and you need to be ready for them.

Ultimately, if you are operating in the right frame of mind, each market will determine your wins and losses.

Comments

[Caravaggio]

I like your comment that 'Watching your profits or losses whilst you are trading can be counter productive...'

It is a fine line between watching a trade for changing conditions, and micro-managing it to suffocation. A tough balance to strike, but an important one.

[Matt]

So much of what we do is a fine balancing act. The line between science and art it seems can be quite blurry at times. Thanks for the comment, much more along these lines once I return from my break.