Today I want to show you… how you can easily turn your portfolio performance around from say a current slump to finally getting back on track, profit-wise.
This is in fact a question that was asked in our Freedom Trading Floor Facebook group. So here are a few pointers to help you out;
Firstly, make sure you always review your trading plan.
I have covered how to create a trading plan previously so make sure you check that out.
And of course, if you don’t have a trading plan, then definitely make sure you check it out because it will help you heaps.
You need to ensure your trading plan has considered all aspects of the stock and the markets, and factor in as many potential issues as possible so there is always an exit strategy in place.
The reality is that many of your trades won’t deliver a significant profit. One or two will be incredible gainers; most will see good but not spectacular performance.
So the first thing is to acknowledge this fact and accept it.
It’s usually the incorrect assumptions or expectations that get us into trouble.
Secondly, stop and review your buys and sells (on a weekly basis at least).
Then ask yourself;
“Am I actually following my plan and rules of entry, hold and exit?”
If not, why not?
If so, give yourself a pat on the back and celebrate.
It’s so common that we never take time out to celebrate a job well done, and here we’re celebrating you following your plan, not the amount of money you make.
Finally, never waste a mistake by not learning the lesson behind it.
When I talk about mistakes here, I don’t necessarily mean a loss.
Rather, what I mean by mistake is when you have not followed your rules – regardless of whether you profit or not.
The bad thing about profiting when you don’t follow the rules of entry, hold and exit, is that you’ll repeat these mistakes and then one day you’ll suffer the mother of all losses.
So if you followed all the rules, and it’s still a loss, I still consider that a good trade.
I hope these 3 key points will help you turn around a temporary performance slump and restart your process to becoming a winning trader.