Brian McAvoy explains why traders need to track specific metrics about their trading performance. Without measurable data, you can't tell if your system actually works or if you're just guessing. He built the Trading Performance Analyzer to make tracking these numbers easier.
Hi, Brian McAvoy with Inside Out Trading here. And today's topic, we're going to talk about one of the things that successful traders do not do, and hopefully this is something that you avoid as well. Anyway, what I'm talking about is how successful traders know their numbers. They will absolutely refuse to trade with whatever method or system. Even if even discretionary traders and fundamental traders, you still have to be methodical in your approach to your trading. Like I said, even if you're a discretionary trader, you still have to be methodical. You can't be just, you know, roll of the dice, fly by the seat of your pants. There's still got to be some methodology to what you're doing and being businesslike and calculated in your tradings and being smart. From you invested in this business, you want to make sure that it's profitable. Well, one of the main things is to have measured your method and measured its performance. That is, it's just so crucial, especially if you're having any kind of issues with doubt or anxiety, hesitation causing you to hesitate or deviate from your plan. This is where numbers give things perspective. You can think you have a good system, you can feel like you have a pretty good system, but if you have any lingering doubts, if you haven't measured it so that you know its potentials and it's both for profit and downsides, really, it's absolutely crucial for you to know all the strengths and weaknesses of whatever your method is, whatever your system is that you're taking to the markets. I mean, you're risking real money with it. Now, one thing, when I put a video out about this a few years ago, had one guy respond, sent me an email and he said, hey, well, Brian, the thing is, I would use a signal service, so I don't really need to do that. And I'm like, oh my God, yes, you do. It's even more important if you're following somebody else, if you're subscribed to a trading room or a signal service or a newsletter or something like that. It's even more important that you're running your measurables there because there you're relying on somebody else. And as soon as things start going south, they're having a bad month, you're going to have doubt and anxiety just crushing you. It is going to be so hard for you to trade because you don't know what to expect. You're just following them and hoping that they know what's going on. Well, the thing is, if you don't have the measurables. Like I said, one little rough spell and your confidence can go right in the toilet. So it's even more important when you're following somebody else for your entry and exit and trade management. It's even more important that you run your measurables there, especially if you're going to before you start risking money with them. If you sign up with somebody new, run your measurables on them for a month first before you risk any money. Make sure that you know that what they're doing is going to be good enough to meet your goals. Now if you need some help with this, and especially if you're following somebody else's trades, you probably will need this. There's a tool I created a few years ago called the Trading Performance Analyzer. Running the metrics and looking at the measurables, the critical stuff that you need to know. Super easy. It's very user friendly. One of the reasons I created it is to have everything user friendly, very simple on one page so that it doesn't overwhelm you. There are lots of programs, lots of platforms that will give you just tons and pages and pages of data and it can be really hard to just sift through it all to know that you're okay. And that's why I created the analyzer. So if you want to check it out, there's a link down below the video. If not, make sure you're collecting your measurables somewhere and that it is meaningful for you and useful so that you know your site solid and the method that you're using is indeed it's reasonable for you to expect that it will perform to your satisfaction and it will meet your goals. If it doesn't, or if you're not doing it, please make sure that you attend to this immediately. Again, being businesslike and calculated and doing things in a proper fashion with your trading business that you've invested in your money. This is just a smart way to do it. You can do this in trading. You can can measure performance, do it. It's something that's totally just purely in your favor. Anyway, if you want to check out more about the analyzer, click the link below. It's Brian McAvoy with Inside Out Trading. Talk to you soon.
