A short trading-advice monologue urging traders not to use profit-and-loss (P&L) as the sole measure of success, especially early on. The speaker recommends tracking measurable, process-oriented improvements (e.g., win ratio, win:loss ratio, cutting losses, letting winners run, defining pre-market plans) to build confidence and avoid discouragement while backtesting and refining strategies.
Don't take your P and L as a measure of your success in the markets especially when you start out and the reason for that is you're not going to find consistency in the markets for some time. You won't have a 10k month, a 12k month, a 15k month and so on. But what you can do is you can start measuring. While I am improving and backtesting I am able to find a strategy that has a 40% win ratio. Well now I've improved it to a 50% win ratio. I have gotten my win to loss ratio from a 2 to a 2.5. I have gotten better at cutting my loss aussies. I have gotten better at allowing certain trades to run. I have gotten better at defining pre market movements or the game plans that I have. They are working a lot better. If you start shifting your focus onto things that you can measure and that aren't P L based you will feel a lot more comfortable, you will feel more confident and then you won't. You just won't get discouraged right.
