Five Fundamental Pillars for Traders

Because a sound process is so important, this reflection takes a closer look at the five points I return to time and again.

Trading isn't something you master casually. It's a profession, and learning a profession usually requires study or another form of in-depth training, supported by guidance that both shows the way and holds up a mirror. And that's what the Mastery is about too: mastery through mentoring. Hence the following.

What I notice with the vast majority of my students who aren't yet achieving the results they want, is that the following areas need more attention:

1. Become a specialist in trading one type of setup: reversal or the break and retest
2. Have the objective confirmation points that belong to your setup 100% clear (see example)
3. Log your trades, reflect on them with your mentor and learn
4. Backtest your system—setup type and confirmation points—using historical data on one asset of your choice - for example this past week
5. Focus on the process and not on individual wins and losses

And I'd like to add a #6: trade with the trend!
Because I see a lot of failed trades coming from trading against the trend.

Usually, one or more of these areas needs attention. Logging, for example. Think of it as your bookkeeping that you present to your accountant. It's essential that it's neat and complete. The same goes for your trading log. With most students who get inconsistent results, I notice the log isn't in order - and the reason it isn't in order often has to do with the points that come before it. It's all very closely connected.

To make crystal clear what I mean, and especially the backtesting part, below you'll find two videos that map out the process behind these five points:

Process + backtesting, part I – finding setups + matching confirmation points
Process + backtesting, part II – making quality screenshots + logging

"I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times, I've been trusted to take the game-winning shot and missed. I've failed over and over and over again in my life. And that is why I succeed."
— Michael Jordan, considered by many to be the greatest basketball player of all time

If you're not yet achieving the results you want, you really need to get the above in order. And practice, practice, practice. Repeat, repeat, repeat. And dare to fail like Jordan, and keep going until you achieve the results you want. There's no better exercise than repetition.

If placing actual trades isn't working out for whatever reason, then go backtest, backtest, backtest and bring those simulated trades to your mentoring call.

Repetition is what turns knowledge into a real skill. In trading you don't become consistently profitable by knowing more, but by correctly executing the same process and the same setup often enough. Repetition creates recognition, confidence and ultimately calm, deliberate execution.

"Repetition is the mother of all skills."
— Tony Robbins

The fully worked PLTR setup from the videos, including the screenshot and confirmation points, is available separately (link removed due to copyright). This is how clearly and concisely you want to present your work: sound confirmation points alongside your trading journal. Not for me, but above all to speed up your own process.

By the way, it doesn't matter what you log with. Whether it's my template, or Berry's, or your own. Logging is logging.