Trading As A Business – Do You Skip This Step In Your Planning?

I want to share something with you today that is a frequent topic of conversation with my private coaching clients.  In fact, it's something that probably stops more traders in their tracks than any other single aspect of their business.

I'm talking about making certain assumptions in your planning, but not having a plan for testing those assumptions.

Traders too often develop a trading system and then don't stop to take a look at that system and ask, “in order for my system to work, what assumptions am I making that will have to be true?”

Almost without fail, not taking that step ends up making any system or strategy more complicated and more cumbersome than it needs to be.

It's buying into a new system or strategy before we even know whether or not it will suit our situation or meet our goals.  It's adding an indicator when we don't fully understand what that indicator tells us and doesn't tell us.

And the only way for most traders to find out if the idea makes things better or worse is to ‘try and see' with real money.

The idea is that you want to shorten the distance between where you are now and where you start getting confirmation about whether your idea is effective or not. About whether the assumptions you've made are correct or not.

So go ahead and make your assumptions. But you must have a business-like way to to validate those assumptions as quickly as possible.

This is one part of what determines if you trade with confidence or anxiety.

KNOWING.

Get a solid handle on your trading and stop living with doubts

Have a great week!

Cheers

Brian

P.S. One of my favorite quotes (just because it is SO true!):

“The problem ain't what we don't know.

It's what we think we know that ain't so.”

– Will Rogers