Think and Trade Like Your Running a Business
"As it turned out, of the thirteen people selected, one-third had no experience, one-third had significant experience, and the remaining one-third had a little bit of experience...[and] one nugget of advice that I believe is valuable to anyone trading the market is: Don't worry about what the markets are going to do, worry about what you are going to do in response to the markets."
A turtle on the turtle selection process
How does anyone approach business if they are serious about becoming successful? They do their research; they learn; they make a plan: they work their plan; they take responsibility for their own decisions and actions. Whether you trade as a Turtle or use another system, the key to success is to run your trading like a business:
Your Business Plan is Your System: Follow it. Create a trading plan and set goals for your trading. Keep statistics on your progress. Measure results. Don't make excuses.
No Gambling Mentality: You think a lawyer or systems manager starts each day with a throw of the dice? Your business is not about short-term gains over a few months. If you are going to trade, then trade for the long term. Write down your trades. Keep a log of your actions. Note why you took certain steps in trades. Learn from your mistakes.
Act like an Accountant: Keep track of every last detail of your trading. This alone will create tremendous discipline and ultimately confidence.
Create a Professional Environment: You don’t need a formal office, but you do need organization. If you trade like a business, you know where trading information is and how to access it. You keep a set schedule and adhere to it.
Take It Seriously: Doctors, lawyers, etc. spend time and money to learn their craft. They are not wondering on a daily basis about what to do next. They know what to do next. They have a plan of attack each day and they work their plan. Could you imagine a lawyer tuning into a CNBC like show listening to some Jim Cramer like character shout advice about what to do in trial?! Of course not, but we all know millions of people interested in trading do this on a regular basis.
Be a contrarian. Think and act differently. If you want to win you will need to put time in to learn the cardinal rule of trading: Run your trading like a business. Unless you adopt a business like approach to trading, profitability will be difficult.