Trading Business a-ha!

15 October, 2010

On reviewing my September trading it has come to me that by designing a discretionary day-trading system with a requirement that I sit with perfect psychology, analyse charts and place trades for 90 minutes I have designed myself ONTO the factory floor.

Successful business owners have a strategy for releasing themselves from the day to day ‘manufacture’ of the profits their business generates not the other way round. Cash Flow Quadrant by Robert Kiyosaki explains this concept as a move from employed/self-employed status to business owner and investor status. Well worth reading.

I have been developing the ES system for a year and it didn’t dawn on me that I would be shackling myself to the manufacture of profits. This is probably more obvious on a down month than an up month but never the less requires a conscious decision to be made regarding whether one wants ones returns to be proportional to the time put into ones work… I had not consciously made this decision and now that I am asking myself whether I want this arrangement… I don’t.

At my present level of trading skill it is more effective for me to develop mechanical signal and position sizing systems that are traded for me than attaining a level of day-trading skill that require I sit and repeat the same actions each day.

So. For now. The ES 90 Minute system is on hold.

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