If you can make a profit, what’s wrong with not following the trading plan? Even if you throw away the trading plan, you can occasionally make a profit. This may bring you short-term pleasure. But from a long-term perspective, casual trading will weaken your ability to follow principles.
Trading is a marathon, not a sprint.
Trading System—The process of foreign exchange trading is a marathon-Yuhui International
When you stop following the trading plan, you may be rewarded for lack of principles and begin to believe that losing the plan is not a big deal.
Unreasonable returns will cause you to tend not to act in accordance with the trading plan in the future. You might think that I have already reaped a return, and I may be able to make a profit again in the short term. I want to take a risk. But the positive results brought about by loose trading are usually short-term, and the lack of principles will eventually lead to long-term trading losses.
It is very important to distinguish between reasonable gains and unreasonable gains. A reasonable profit is that you have formulated a detailed trading plan and acted according to the plan. Following the trading plan to make a profit is reasonable and will strengthen discipline. Unreasonable profit occurs when you plan to make a plan but don’t follow it, or when you have no plan at all. You may be rewarded, but this is only accidental. You might as well toss a coin, or print out your chart and hang it on the wall, and throw a dart to help you make trading decisions. This kind of profit is unreasonable, and it is likely to increase casual transactions.
Adherence to principles is very important for continued profitable trading. Trading is to bias the law of averages to your side. You trade in accordance with the proven trading strategies, and so on, after a series of transactions, these strategies are enough to bring overall benefits. It’s like shooting continuously on the court to win. The more shots you make, the more likely you are to increase the total score. Look at Kobe Bryant and Dwayne Wade.
The winning athletes always improve their skills and shoot continuously, so that the ball may pass through the basket whenever there is a chance. They keep honing their shooting skills in the same way at all times. Consistency is very important.
The same applies to transactions. One must maintain the consistency of transactions, and each transaction follows a specific transaction plan. If you trade like this this time, and trade like that next time, your performance is probably not very good.
I can’t emphasize this too much…
You have to let the law of averaging take care of you so that you can make a profit after a series of transactions.
If you sometimes follow the plan and sometimes throw it aside, then you lose the chance of profit, and you are likely to suffer losses in the end.
There are principles, there are benefits. Don’t let unreasonable gains reduce your ability to follow principles. Follow your own plan, and remember that if you follow the plan, you will profit in long-term trading.