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  • Dillon Dhanecha

Profits Follow Process

It’s true; you get in to trading for the profits, not for the “thrill”

It’s also true that the holy grail of trading is “consistent profitability”

So why is it that most traders unknowingly and unwittingly become thrill seekers at the expense of consistent profitability?

The answer is in the question; it is because they unknowingly fall in to bad habits and unwittingly become addicted to the rollercoaster ride offered by uncontrolled trading

Think back to your first experiences as a newly trained trader;

You had a process and you were determined to follow it

Whether you were trading end of day or start of day, currencies or stocks, spot or options, you knew what you had to do and were determined to do it the right

And for a while, you do exactly that

You open your charts

You refer diligently to your checklist

You stick closely to your trade plan

And for a while, this works

You keep hold of your capital

You take wins with grace

You take losses with equal grace

And then one of two things happen that lead to a slight shift in the way you trade:

You’ll either have a string of wins


You’ll have a string of losses

In either case, you will begin to “fine tune” and “tweak” the system that you’ve been taught in order to regain control

Short term, you may not notice any dramatic changes to your habits or your profit

But over a period of time, both will take on a life of their own which means that regaining control is the last thing that you’ll do

On the face of it, you’ll be doing the same things:

Opening your charts

Referring to a (new) checklist

Sticking closely to a (new) trade plan

But you’ll be missing one very important detail; consistency in following a well defined process to execute a system that has proven itself to work

You will stray so far from the original system that you were trained to follow that although your activity looks the same as it did when you were in control, the results tell a very different story

You’ll ride the rollercoaster ride of wins and losses that 95% of new traders experience

You’ll continue to “fine tune” and “tweak”

You’ll “feel” like a trader because you’ll be testing new signals and strategies, reading up on new systems, soaking up analysis, devouring You Tube videos and anything else that will help you piece together the roadmap to the holy grail of consistent profitability

All the time, you’ll be haemorrhaging your capital

All the time, you’ll be conditioning your mind to thrive on the excitement that “not knowing” offers

All the time, you’ll be moving further and further away from the proven habits that you were taught to follow

One day, you’ll realise that you have unwittingly become addicted to the thrill of trading; sacrificing consistent profitability in favour of what you “think” trading should feel like and look like

I won’t lie to you; there is a definite sense of excitement in the air at Legacy Makers every Friday when the trades we have set weeks ago reach expiry BUT other than that, it’s a fairly mundane existence

Systemised by process

Supported by principles

Sustained by profits

Exactly the way trading should be

You already know that trading is risky; that is why the financial rewards are so high

And that’s why it’s important not to introduce unknown risks in to the mix by unknowingly and unwittingly straying off course

Here’s 3 things to think about that will help you stick to process and ensure that profits follow:

  1. Make a conscious connection between your trading profits and the wider good; traders at Legacy Makers, choose to invest a portion of their profits in charities and organisations that are working towards solving the 17 biggest challenges to humankind as defined by the UN Sustainable Development Goals. This places a wider context to your trading than short terms wins

  2. Understand that, all things remaining the same, trades are unrelated to one and other; this means if you have a string of 10 wins, your 11th is no more likely to be a winner. Likewise, if you have 10 back to back loses, your 11th is no more likely to be a loser. This allows you to detach from individual results

  3. Be aware that the nuances of trading strategies are such that mixing and matching techniques from multiple sources is a bit like trying to bake a Victoria sponge by taking ingredients from a Delia Smith cookbook, instructions from Mary Berry and insight from Vegan Vince on You Tube before throwing it all together in your own hap-hazard way; it simply won’t work. This allows you to consider the absurdity of what you might find yourself doing!

Trading should be the most boring aspect of your life; the lifestyle you can lead and the difference you can make to others is where the excitement really comes from 

Stand guard at the gateway to your habits; which means being absolutely conscious of what you are doing so that you can spot yourself straying off course

Separate yourself from the masses of new traders who chase profits at the expense of consistency; which means defining your success by how consistently you stick to process

Addiction to process is what will ultimately lead you to an abundance of profit

Remember, it’s not all about the money. It’s all about the M.A.D Money!

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