Consistency for growth! 👋👋
Hey there ,
Welcome to #4 of The Daily Edge! I want to share a couple of words on how discretionary trading stopped me from reaching consistency. I have been trading many different styles and strategies over the years, each had their benefits and their setbacks. All these strategies had one thing in common, they involved discretion.
Discretion in trading means that there is room in the trading plan to decide, on the spot, what action to take. This basically allows for a different approach to the same situation which results in different outcomes. When I started with trading I could not reach consistent results because rather than my plan, my discretion made me decide which setups to take and which to skip. I would doubt in certain situations because my plan did not specify exactly how to react.
From that moment I started to gradually get rid of discretion and build my trading plan as strictly as I could. Right now, I follow my rules and react based on those rules, little to no discretion is involved and the results are amazing.
Here is what changed for me once I got rid of discretion in my trading plan;
✅ I have eliminated emotional involvement. I no longer doubt about a setup because my plan states exactly whether it’s valid or not.
✅ I am no longer wasting time behind my screen. My plan specifies exactly when a setup is ready and I use alerts to inform me when to look at an area of interest.
✅ My results have improved because I am executing setups consistently.
Please take from this story what you need, analyse your own strategy and ask yourself how your results were affected by discretionary trading.
Just remember, if you need anything at all, we're here for you! Love and Warm Regards, Kirill Klein Lebbink