In today’s episode, you’ll discover how to tell if you’re on the right track in trading.
So go watch it right now...
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Hey hey, what's up my friend, so in today's episode right i want to talk about you know. How do you know if what you're doing in trading is correct because here's the thing in trading - it's not like. You know school where you get praised by your teachers. It means that you're, a good student you're doing something right, and if you get scolded, you get punished.

When you get cleaning, it means you're, a bad student and you're doing something wrong. It's not quite straightforward in trading, because you can make money on wrong trading decisions. Like you know, averaging into your losses, widening your stop-loss, you can make money you doing such things. At the same time right, you can also make the right trading decisions and lose money, so you can see that in trading, it's not as clear cut right.

So this is why, in today's episode, i want to share with you a few things to look for right, so that you are certain right, that you are on the right track and you are making the right trading decisions. Okay, first and foremost, number one. You must have a trading plan, so what is a trading plan? So a trading plan is a framework right that tells you right what exactly to do where to buy when to buy, how much to buy and sell whether you're trading stocks, fx futures whatsoever. This is what a trading plan does for you.

It's like a framework to guide your trading decisions. Why simple? Right? Because if you don't have a framework, if you don't have something to fall back on to kite your trading decisions, then you'll be trading based on emotions. You'll be trading based on subjectivity, you'll be trading based on your gut feelings. Can you see where i'm coming from and if you are trading based on you know, emotions, uh, gut feelings whatsoever.

I'm sure you can agree that your actions won't be consistent right if you're in a good mood, you may do something different if you're in a bad mood, your trading actions might be different again. So, in the long run, what you're gon na get is inconsistent trading results and that's a big step backwards. Okay, so this is why we need a trading plan, a framework to guide our actions. So once you have a consistent set of actions, you will then get a consistent set of results.

Number two: you must have a trading journal. Every time you put on a trade, you will record up record it down in your trading journal. You write things down like you know your trading setup, the name of your trading setup, uh, the markets that you're trading, your entries, your stop-loss, your profits, et cetera, and the purpose of your trading journal right is it's kind of linked to your trading plan, because, if You follow your trading plan, then your trading journal right will be trading setups that are, according to your trading plan, whether you trade breakouts train continuation, trade et cetera. So your trading journal will be kind of linked to your trading plan.

It will be trades that are taken according to your trading plan, and this is where things get interesting. If your trading journal - let's say after 100, trades 200 trades, you realize that you are making money from your trading. It shows that you might have an age in the markets right, you are doing something right, okay, but at the same time right, your trading journal could also be you know, costing you money in the long run. This tells you that you know hey your trading plan.
You know it's not working as well, it should be right, you know, maybe your trading strategy needs refinement and tweaking and the only way right, you'll know this is, if you have a trading journal. If you have something right that you can look back on right to see your progress over time and that's the power of a trading journal right, it helps you improve your trading results. It tells you whether are you headed in the right direction or whether, whatever trading plan, you that you have right needs refinement, needs tweaking and its changes. So this is where your trading journal comes into play.

That's number two, so you must journal every single uh trade that you take, especially if you're a price action trader discretionary trader uh. The third thing you ignore opinions right and just simply follow your plan. And that's if you do that, i applaud you, because you are definitely in the right direction, because oftentimes right traders on social media, you know twitter, facebook whatsoever. They are seeking the opinions of other traders.

Hey hey, rainer. What do you think of this chart? Man? You know gold is an uptrend. Do i buy right now? Oh, you know: hey reyna. What do you think of this xyz stock right now? Can i buy right now? Should i sell so here's the thing right? If you follow the opinion of someone else, the problem with it is that you do not know what is their trading plan.

Second thing is that you do not know when they will exit the trip, because you can be pretty sure they can tell you when to buy, but when they sell, they won't tell you all right. So, that's why you don't want to follow the opinion of other traders because they have different objectives. Different time frames, different goals. So this is why you want to follow your trading plan.

Follow your rules, ignore the opinion, the analysis of other traders and if you really really want to follow a trader, someone that you know to to give you some uh education learning curve. Conviction then follow someone that adopts a similar trading methodology like you, like, maybe price action trading, or you know your trade similar market similar time frame then fair enough. But if someone is a day trader and you're a position trader, it doesn't make sense. It's a clash.

Okay, so if you really want to go down the route of you know, learning from somebody else, learning from the analysis make sure you're all on the same page, you're online, if not, ignore opinions, just follow your plan. Okay, the next thing right number, four, proper risk management, because here's the thing you can have the right plan, you can have the correct trading system, but if you don't have proper risk management, then guess what all of them are pretty much. You know useless as void. So, every time you put on the trade, you want to make sure that, even if that trade turns sour, even if that trade goes against you, even if that trade hits your stop-loss, you want to make sure that you don't lose more than one percent of your Trading account, so i know one percent is, for those with you know a pretty much medium size or large size account.
One percent is doable, but for those of you with a small account like a hundred dollars fifty dollars, one percent may not make sense, but still, i hope you understand the concept that i'm coming from every time you put on a trade. If it goes wrong, you want to make sure that the damage to your account right - it's not too big right, like a volcano eruption, you want it to be just like an end by some something small. You know there's a slight pain right, but it won't disrupt your trading okay, so risk management and the final thing right to know that whether you're on the right track is this is that trading is boring. Trust me right once you become a consistently profitable trader once you know you are up to the next level.

You really realize that you know trading is boring right because you're, just simply following the rules like a robot, there's nothing much left to think right. Everything kind of becomes automatic like, for example, let's say if you're a price action trader, you look for the market to be in an uptrend retrace to an area of value. Look for you know a bullish reversal pattern before you buy just repetitive right up trend, area, value, entry, trigger up trend, area value entry trigger or if you're a systems trader, it gets even more boring right. You just scan the markets for specific trading setup.

The the system tells you to buy or sell you just follow it put it in your broker's platform, and that's it right. You don't even need to do any thinking, because the system has done the work for you. So once you reach a certain level of trading proficiency, right trading gets boring all right. So as a quick recap right how to know whether you know you're trading, the things that you do is correct number one.

You have a trading plan, that's good number! Two! You have a trading journal, fantastic number, three, you ignore the opinion of other traders and just focus on your plan. Beautiful number. Four, you practice sound risk management and number five trading starts to get boring well done, you're on the right track. So with that said, i wish you good luck and good trading until next time you.


By Stock Chat

where the coffee is hot and so is the chat

35 thoughts on “Trading: how to tell if what you’re doing is correct?”
  1. Avataaar/Circle Created with python_avatars Enyi Emmanuel says:

    My aspiration is to get to that point where trading would be boring. hahahah

  2. Avataaar/Circle Created with python_avatars JaK_Sparr0w says:

    Hi dude
    Would you mind taking a look at my risk management sheet and strategys sheet? Suddenly consistent results now! Wins coming through
    Would just love a bit of confirmation, that it's looking good
    Don't need to delve into any discussion if you don't want to, just a simple "yeah looks good"

  3. Avataaar/Circle Created with python_avatars Yogesh Paliwal says:

    I want guidance for short selling

  4. Avataaar/Circle Created with python_avatars Yogesh Paliwal says:

    Sir u r guidance for trading is best

  5. Avataaar/Circle Created with python_avatars Mutsawashe Mazvimavi says:

    When you're feeling shaky about your open trades and you just watch some Rayner and chill out, stick to the plan and take profits. 🏄🏾‍♂️✅🇿🇼

  6. Avataaar/Circle Created with python_avatars James Murray says:

    I need to work on my risk, but when it’s boring that’s when It’ll be really happy.

  7. Avataaar/Circle Created with python_avatars Nicolai Marquez says:

    "Trading is Boring"

    PLEASE, GET THAT INSIDE YOUR HEAD

    Once you have a plan, a true plan, there's no room (there shouldn't be) for ambiguity. After a while, everything is so monotonous that you'll like to experiment and try out new stuff. DON'T DO IT. If you want emotion, look for it outside of trading. Go hiking or something. Isn't trading supposed to give us the freedom to do what we want?
    A mindset that has really helped me improve my trading is to not have "being profitable" as the end goal of my life. Trading isn't fulfilling in that way, unless you teach others. To me, trading is just a means to an end. And that end is to do what I really like and have time to do it. And so… it's routine. It's boring. I do the same every day. I'm a day trader. I do (or try to do) three operations a day. I wait patiently. Sometimes they come quickly, sometimes they don't come at all. Tomorrow will be another day. But I don't rush it. And because I don't rush it, it's boring. There was a rush of emotion in the beginning. Now it's gone. But I don't change it, because trading isn't the goal. I have other goals. Trading is routine. Like brushing my teeth.

    When you see it like that, you'll probably start to be more profitable 🙂

  8. Avataaar/Circle Created with python_avatars Anang Hadi says:

    Please make video for how to be full time trader? Tips and managing time as well. Etc… Thank you for sharing "ma friend"

  9. Avataaar/Circle Created with python_avatars Aard Jan van Musschenbroek says:

    Yes, it feels good to not get excited about a trade anymore. To not care about if you win or lose. As long as you kept to the plan.

  10. Avataaar/Circle Created with python_avatars T Ctra says:

    I have been busy testing all your tutorial on my live account and it seems like it is working considering that i am new to trading. My plan and some of the concepts you have shared are working.Thank you for sharing amazing videos.

  11. Avataaar/Circle Created with python_avatars Chris Tucker says:

    Are you failing to make profits my advice for every trader is to cut off your losing trades and just be guided by an expert tips

  12. Avataaar/Circle Created with python_avatars Pranav Pal says:

    I like when he says HEY HEY WHAT'S UP MY FRIEND

  13. Avataaar/Circle Created with python_avatars Roberta Free Spirit says:

    great content as usual! Love the mindset of not following anybody! 🙂

  14. Avataaar/Circle Created with python_avatars Christine Leong says:

    Ignore other’s but listen to Rayner!

  15. Avataaar/Circle Created with python_avatars Stock Engineers says:

    Hey Rayner, can we have a video on how to find and work on our mistakes because for us, the setup we used or the trade we did was correct unless it went wrong. So how do we find n correct what was our mistake.
    Hope you got my point. Even if everything was correct what's next thing need to focus lacking which trades are going wrong.

  16. Avataaar/Circle Created with python_avatars Carlo says:

    What is the difference between a trade plan and trade strategy?

  17. Avataaar/Circle Created with python_avatars Gavin Aubrey says:

    so simple, so clever, thanks Rayner!

  18. Avataaar/Circle Created with python_avatars Fahim Mansoor says:

    question: i'm a beginner and don't know where to start. What's the most recommended place/area to start learning? thanks

  19. Avataaar/Circle Created with python_avatars William Latham says:

    Mr. Rayner I must be on the right tract you hit dead in the head when you mention about a trading journal I think that is the key not only to record trade, but record about yourself mood, reason for entering, did you follow plan, entries, exit, risk management, and what can I learn about market, and myself. I must say my trading really turn around when I started keeping a detail journal because I found out some things about myself. Sure I still losses sometimes, but I looks at losses at room for improvement what can I learn from the loss.

  20. Avataaar/Circle Created with python_avatars Hasnizam Hashim says:

    lets ask Mr Warren Buffet, is being billionaire is so bored?

  21. Avataaar/Circle Created with python_avatars Tato Bollini says:

    holy shit you just described the whole process i went through in these past 4 months! so good to know I am on the right track ! thank you rayner youre a boss

  22. Avataaar/Circle Created with python_avatars satyabrat samal says:

    Hey Rayner, I have learned a lot from your video.. and I can't thank you enough.. always practical and logical.. it's a joy to watch your video… May god bless you..

  23. Avataaar/Circle Created with python_avatars Raseel Bhagat says:

    Loved the last step… Trading gets boring 😎

  24. Avataaar/Circle Created with python_avatars bartholomew anaeme says:

    Rayner can you actually do a live trading video showing any of your strategies because you have educated us enough but we need some practicals I.e. real live trades

  25. Avataaar/Circle Created with python_avatars Titan Ian says:

    "Volcano eruption" I've been there 😂😂😂

  26. Avataaar/Circle Created with python_avatars ToxicIQ says:

    When Reynor tries to imitate other peoples voices
    "👴🏽Hey Reynor……."
    😂😂😂

  27. Avataaar/Circle Created with python_avatars GAVIN GRIERSON says:

    Be Disciplined, Keep Emotions out of it and don't be greedy is my principles I've taught myself and abide by. I trade forex and have implemented a Top Down Strategy. I check news and how currencies are performing for the day and go for it. On average take 5 – 10% per trade.

  28. Avataaar/Circle Created with python_avatars Fr Leppp says:

    Sir, please how do you find your key levels?

  29. Avataaar/Circle Created with python_avatars Anand AD says:

    Hey hey what's up my friend … 😎👍

  30. Avataaar/Circle Created with python_avatars Toastcook1212 says:

    Thanks for all your help Rayner!!! You da best

  31. Avataaar/Circle Created with python_avatars NVTForex says:

    So entering a losing chain is going in the wrong direction, right everyone.thanks very much!

  32. Avataaar/Circle Created with python_avatars Sushil Meitei says:

    Plizz tell show does buy or sell sir

  33. Avataaar/Circle Created with python_avatars Mrutyunjay Rout says:

    Hey hey what's up my friend 😅😅I really like your intro

  34. Avataaar/Circle Created with python_avatars Fights Alpha says:

    sir every trade is went to wrong direction
    (how to correct it please help me sir) my confidence level is doesn't decrease 😔😔😔😔😔😔😔😔😔😔😔😔😍😍😍😍😍😍😍😍😍

  35. Avataaar/Circle Created with python_avatars Rohit Choudhury says:

    I have been doing swing trading for last 3 Months and took over 100 trades and all are in profits. I didn't apply stop losses and the stocks finally bounced back after falling a bit. Had I applied a SL, I would have been in losses.

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