What's Your Number?
At the start of my coaching program, I schedule a call with my mentee and we have a discussion surrounding goal setting. I believe this to be an important part of the process. It gives focus and sets the tone of the journey ahead.
I am very keen, right from the start to manage “expectations”. Now so far everyone who I have had this conversation with has been very realistic. But as I read though social media, it’s obvious to me that in general this isn’t always the case.
So what is realistic? It is easy to get a bit carried away. Afterall if you spend any amount of time on Twitter, you will be under the illusion that trading is as easy as “pressing a few buttons” or even following one of the plethera of newish posters who all of a sudden appear and start posting their successes up. After a couple of weeks they become experts and people start fawning over their generosity to share and their amazing advice. Seen it a hundred times. Often it involves a very high strike rate, but with a very poor risk v reward factor. I don’t care to much about this, they come and go. But I do care about the people they suck in, and ultimately spit out again. Anyway I digress.
I ask again. What IS your number?
£15 a day? £50 a day? £300 a week? £500 a day? What do you want to earn?
The reality is of course, this is all unimportant. If you cannot be consistent enough to make a WEEKLY profit, II say weekly, because if you cannot get the consistency to profit week in week out, I suggest your long term execution may need some more work.
We then get to scalability. The suggestion that it is pretty much infinite is bollocks. In most of the “bread and butter” markets. I would not feel too comfortable using more that £2 or 3k as a liability. Getting your money into a market is easy, but getting it back out when things go tits up is a different story. BUT you can do a fair amount of good with a modest bank of £1000 ( as I have been using to make some “realistic” videos for my group)
Knowing what to stake is a real conundrum, Using a tiny back is sensible, but has it’s own issues. After all, if you have a pre defined exit position (as I teach) then ideally you should take that. However, if the loss to you is 16p, but letting it m one another tick against you results in a 25p loss. Do you have the self control to take this exit? Now at a difference of 11p you will not care either way. What about £11? What about £111? see my point?
Making the right call at the beginning when you are learning the ropes, will no doubt save so much pain when you start trading with bigger stakes.I see many traders with small banks and unrealistic expectations. They expect to be able to tune in a procession of 30 tick swings every day, When I hear “I just want to make £100 a day with my £200 bank” My heart sinks.
Make no mistake, if you want to win the bigger amounts that you see, you need bigger stakes. But before you get to that level of staking you need to:
- Understand exactly what you are trying to achieve
- Have a clear understanding of how to achieve that.
- Have some consistency
If you do not have mastery of these 3 key points, you are doomed to failure for sure.
Now, I am sure you would agree that on this perilous journey into the unknown, it may be better to be cautious and if you are going to lose, then the significance is reduced. I can take it further that that though.
You need a controlled process, be able to have trust in that process, and then be able to execute that process, over and over. That in a nutshell is what we are striving for.
If you have the spectre of the fear of losing money, or the paralysing fear that can grip you that you may be missing out. The execution goes out of the window.
Take “money” out of the equation. Concentrate 100% on EXECUTION.
I hope you have enjoyed this article and it makes sense to you. If you feel that you could benefit under my tutelage. Please pop over to my “Education With Steve” page to see the options you have.