After acquiring the right software (HAWKEYE) along with a few years of experience with the market, you have the tools and information you need to succeed. But for many aspiring traders, it’s not easy to make the transition from theory to practice. From analysis to real-world performance.
On the hard right edge of a moving chart, it’s no longer about theory or analysis. It’s about the ability to think and act properly under pressure. This is the difference between an amateur and a professional… in sports and in trading.
It’s the difference between a losing or break-even trader and a consistently profitable trader. So how do you increase consistency?
I’ll give you an example from the world of sports.
I play competitive tennis and I’m the captain of our club team. Our coach once told us that “At your level of play, 80% of the points are lost, not won.” That comment really hit home.
He was not trying to insult us… he was simply pointing out that as aspiring tennis players we are more at risk of beating ourselves than losing to the other team. Frankly, until you have years of experience under your belt, the same goes for trading.
There are two ways to change this: the 20th Century model and the 21st Century model.
The 20th Century model is the classic Vince Lombardi approach: “Winning isn’t everything, it’s the only thing!” Along with that goal oriented attitude there’s a focus on preventing mistakes by the threat of punishment. You’ve probably tried this negative approach many times. It’s that critical inner voice you hear when you make a ‘stupid’ mistake.
The key to this 21st Century approach is to break down trading into small pieces, clearly defined behaviors and skills… and then to deliberately practice them until they can be executed perfectly. This is like grooving a tennis stroke into muscle memory. It sounds easy, but fewer than 1 in 100 traders actually takes the time to consciously practice skills. And that’s why so few succeed.