Common Traps We Can Fall Into After A Great Month or Year

in this video guys we’ll talk about some of the common traps

that we can fall into as traders when we’ve had a magnificent month magnificent quarter

or a magnificent year stay tuned hey traders welcome to you all right so you may know maybe you haven’t had one yet but you if you can stick to the path and stick to the process

it will come and maybe you can look back on this video and go ah

hopefully you won’t fall into this trap if you’ve had one

already then you will know and by one i mean that

you’ve had a really good month a really good quarter or a really good year and it’s actually worse the longer the good if you like a month not so bad so if you had a really good year let’s say you’ve blown out all expectations and you’ve at the end of that year or whatever point it is and you’ve gone i never thought i would make this much from the markets this year i’ve worked hard and it’s paid off look at my trading account it is way way more than i expected and you feel fantastic

and that is great it’s the best thing we can have as traders it’s the best feeling in the world as a trader and we want more of it now the trap

that many traders will fall into is that the effort it took

to get there to get that they won’t repeat

for the next period of time so let’s call it a year whether it’s a quarter a month let’s just call it a year and what will happen is you will start to think that actually i was just in the right conditions it was the right time it was this it was that the other you don’t realize that it was the effort you put in

it was the time spent running through your process it was the time spent journaling it was the time spent staying out of those trades that you shouldn’t have been trading it was a time spent spent being more aggressive on the right trades it was all the things that you did right now of course you made loads of mistakes in that year you made silly mistakes but you put the effort in and it was the process that got you

to that significant goal at the end of the year

and the thing is you then go into the next year and you forget about all that so maybe you start getting a little bit slack because now you think hey well i’m really good trader i’ve made a lot of money and i’m more than likely i’m going to make more than that this year very quickly i’m going to be the eight figure trader i want to be or whatever number you’re thinking and so you start to then go into the next year

with a little bit of complacency now let’s just get this straight guys there’s a fine line between complacency cockiness and what i’m talking about obviously we don’t want to be complacent and start doing this because you still uh careful and cautious but you’re not doing the same things maybe you’re not preparing as much maybe you’re not journaling as much maybe you’re not analyzing your trades as much maybe you’re not being all those things that you know have worked and before you know it you’re trading the bigger size because of course your account has grown and you want to grow it again the next year you’re trading bigger size but of course the damage

you you forget about how you recovered from the drawdowns because of course that year

you would have had some drawdowns that you’ve recovered from you’ve dusted yourself off and you’ve gone to new highs and that may have been the difference actually sidestepping slightly

from this year from many of the early years where you struggled the drawdowns might have been longer and stagnating and more brutal but you’ve recovered from those and so you don’t end up having the same mindset your trading is still size you’re making mistakes that perhaps you haven’t before

you haven’t got the same determination to put that great year in

and what happens is you end up maybe drifting for a quarter

and you go you know that wasn’t a very good cause maybe you’ve been blamed on the market and that could be fair maybe the market’s not quite as as fruitful for you but then you get another quarter and you’re like well i’ve done okay but you know it’s not doing so well and and the danger you’ve got then is you then go into defense mode because you go well i’ve made so much money those last year whatever it is i need to just be careful now and just and kind of contract and protect and go small size now there’s nothing wrong with defending capital

don’t you know let’s not confuse that those of you guys have been around the channel a while i know that’s very very important without capital can’t trade so there’s nothing wrong with going defense but very often as traders we then stay defensive

for a longer period of time because we kind of we don’t

go on the attack when we should do was a previous year we’ve played defense and attack at the right times the right conditions the right mindset when we’re in the right mode and frame of mind

and it’s worked well you know we go into the year and worst case scenario is we don’t play defense at all and we end up just frittering away money we’re going in heavy size because we’ve got a bigger account and we end up doing damage and we feel like hey i can give her back some money i made so much money doesn’t matter if i give something back and we have the wrong mentality just like after making a winning few trades the same kind of thing on a long time frame

second worst case scenario is you play so much defense that you don’t uh you protect that capsule so much that you don’t put it to work when you have the right conditions you don’t get aggressively need to and you kind of fritch away or you you tread water maybe you make a tenth of what you did or half or you know those are the things that can easily happen to a trader

and then you get stuck in this situation where now you’ve had another year you know a great year maybe had a medium year and now or or an average year now what do you do you can have another average year you have to get a drive back the determination so one of the things guys you’ve had a great year try not to put a definitive ending on it try and say okay

listen um what did i do really well in that year

that made me that money what did i do that really

kind of gave me that confidence to press things

what was down to markets what was down to external things that i can’t you know influence or do anything about market conditions were good they said that okay note those down recognize what the market conditions are you should have that anyway for your trading strategies when to implement the right strategies in the right environments etc but what did you do well were you running through your process every day were you very good at managing your risk were you very good at all those things that we talked about beginning the video recognizing those and then making a concerted effort to keep that momentum going and things like how did i recover from drawdown how did i recover from superb days or not recover how did i continue those superb days not give it back all those things that we know comes in to the long-term

uh success recognizing that and try not to fall into that trap

of being too content try not to fall into that trap of

just relaxing too much of not being aggressive still

um of being super defensive or being aggressive

uh with just a gun hoe strategy try just to

focus on the things that work well for you because whilst you might not have two or three years of you know huge growth in a row even if you do you know a percentage of what you did if it was a monster year and you did 80

of it you’re still gonna be very pleased so watch out for that guys watch out for being content watch out for taking things for granted and watch out for not having the fire and the hunger and the process and the work ethic

that you had to actually achieve those results

from the prior year take care whatever you’re doing guys keep mismanaged goodbye


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