Does Your Trading Approach REALLY Impact Your Overall Profits?

Hi, Brian Mackwell here with Inside Out Trading. Today we're going to talk about a high level matter but it's really important because this has a massive direct impact on your results and the, the optimism and confidence that you can have in your trading. Really it's, this is a big deal, so it's worth a couple of minutes, not going to take all day. But this is a really important matter and what we're talking about is the high level strategy that you are bringing to your trading. And what I'm talking about is are you, there's generally two approaches to how you want to trade. You can say, well I want to be the kind of trader where I can sit down and I could trade all the time no matter what's going on the markets. And I man, no matter what the markets present me, I can be getting in and out and making money every day. And there's merit to that. You can also be the kind of trader that says, well, I'm not going to try to be everything what I really want. I want good consistency, I want more predictability to my trading. I want to know how much I can kind of plan on making in any given month. And the way to do that is what we're talking about here is methodical trading versus discretionary trading. Discretionary trading is just like no matter what the market's presenting, I'm just going to respond to whatever they're showing me and I'm going to be able to get in and out of the markets. Doesn't matter what's going on, flat ranging, volatile all over the place, counter trending, doesn't matter. I'm, I want to trade all of it. Okay, you can do that. But here's the trade offs. You can also say, well no, I want to be more of a methodical trader. I want to look for very specific circumstances and I want to have a strategy that's extremely clear, very methodical and I know that if I'm trading under those circumstances that I'm going to get X X number of results. I will have a certain winning percentage when I have a certain profit loss ratio and I'll have a certain average return per trade. And if I'm, and I can also plan on, because I know this method so well and I know what I'm looking for exactly that I can expect so many opportunities per month. So I also complain my income for the month because I'm being very specific in what I'm doing. I'm not trying, I'm not trading everything I'm looking very, for very specific conditions. Here's what I'm talking about. Most strategies, specific strategies are based on a certain premise that work in certain conditions. For example, if you got a trending market, well, you can say, all right, I want to have a momentum strategy where I'm looking for the markets are moving and there's enough momentum there that I can get in and ride that momentum for a little while in a certain one direction or the other and get out and make a profit. Cool. But a momentum strategy works only under conditions where you have some momentum. It's not going to work in a choppy market. So if you're trying, trying to trade a momentum strategy in a choppy market or highly volatile market where it's just all over the place, but it's not really moving up or down, not going to work well in that it's designed for trending markets. You also have strategies that, designed for flat markets. You have strategies that are designed for volatile markets, but they're looking for very specific market conditions. And the trade off is with the discretionary trader where you're just going to trade whatever the markets are looking at and you're just going to kind of reason it out. And I want to just kind of shoot by the hip and man, I'm just going to stand here and box with the markets. Cool. You're introducing way more variables to things. And so whether or not you're, you're going to make money this month, that might be a big question. Where are you going to make money this year? Might be a big question. If you're going to be a methodical trader, you might not be able to trade every day because your strategy doesn't work in all conditions. It only works when certain conditions are present. And so if you want to be able to trade more often, you don't want to sit on the sidelines, then you have a choice. You can say, well, if you know the markets are trending, cool, I can use my trend following strategy. If the markets are flat, I need to develop a strategy for those conditions. And then you build out a playbook where now, okay, instead of just one strategy, I've developed four, three or four or five. So that no matter what the markets are presenting me, I can trade pretty much any time. Because now, no matter what the circumstances are, I can trade those and I can do it in a very intentional manner, in a very knowing manner. Whereas a straight up discretionary trader, he's just firing off the hit. Now I'm speaking to traders who are not that far along in their trading careers or developmental wise doesn't mean that you haven't been at it a while. But I know a lot of traders when they first get into trading, they want to jump straight to discretionary trading. It's like they want to be trading every day, all the time, man. I just, I want to be trading. And so they're trying to be a discretionary trader and trade all market conditions and they wonder why they're having a tough time. What I usually recommend is no start off with one strategy, get very good at it, develop it, then build out your playbook. Now you've got the versatility to trade more market conditions, but you're doing it under a very known and a very specific, very intentional manner. So if the sounds of interest to you, if you've been having a tough time with your trading, if you'd like to explore this more, be more than happy to talk with you about it. Swing by insideouttrading.com Book a call with me. We can talk about how to do this in your trading. See what you've been running into. Make sure you got a good solid trading foundation and how to how to move forward really just so the trading becomes what you've wanted it to be all along where yeah, it's fun and profitable and it's a big plus in your life, not the struggle and frustration. So I hope this been helpful. If it has, give me a like and a subscribe down below. Share it with your friends but remember to swing by Inside out trading.com book a call with me. Also got some free materials there for you. Help you become a better trader. Talk to you soon. Cheers.