It’s all very well to say that we should remain positive in the face of lack luster trading performance. However, positivity requires hope to exist. Positivity without hope is delusion. Hope can only be generated if you can see a possible path forward; a different path than the one you have been traversing thus far, that “hopefully” brings about a positive result even if in small measure.
There is an agile project management methodology called Scrum. Two of the key tenets of this methodology are inspection and adaptation. There are two Japanese management philosophies, Kaikaku and Kaizen. Kaikaku emphasizes radical improvements while Kaizen guides you toward continuous improvement. These were created for manufacturing facilities but have been successfully adopted to other types of businesses.
If we are to consider trading as a business then we, as traders, should adopt a mindset of inspection & adaptation, constantly looking for continuous improvement opportunities. Following these evolutionary principles allows us to think outside the box, to challenge long standing assumptions, to seek out new and untrodden paths.
Figure out where you are failing by inspecting your past trades and performance. Break things down into meaningful bite-sized components. Make radical improvements where possible and then apply the Kaizen philosophy to continually improve your mindset, attitude, risk management, strategy, trading plan, etc. Keep an open mind. Be quick to try new things and be equally quick to chuck what’s not working. Don’t try to fit something into your trading just because some “expert” out there says that it is the next best thing to sliced bread. There are too many experts in our industry and just as many conflicting and different trading methodologies. Try them out and determine what resonates with you and then let your performance numbers speak to their efficacy. Don’t get emotionally vested in any of them. Keep it simple. Use what works and throw out the rest. Then iterate on what works to continually improve your performance.