What a name huh? In an industry where we are trying to preach seriousness and “Trading as a Business”, we come up with the JackPOT Trading Philosophy… Yes. Yes we have and we’ve done so on purpose. Let me explain.
In trading the following mindsets tend to make us lose money, almost every time:
- Looking for a trade that won’t lose
- Looking for the sure thing
- Looking for the perfect trade
- Looking for the big perfect home run trade so we can put on a massive position relative to our account size to ‘hit it big’, hit it big in one trade.
- Being afraid to take the correct entry
- Being afraid to get out at our stop loss
- Being stubborn to take profits when it’s time
In order to have long term success in trading we all need to trade a methodical system, an options trading system in this case.
Psychologically speaking, if we can now apply a gambling mindset, a ‘hey lets roll the dice’, once a solid, rule based trading system and money management system is in place, where the systems rules are the only methods of trading execution you do, then we can facilitate actually executing the system correctly, vs. over thinking and screwing the system up.
This means when we apply the happy go lucky mindset of “taking a shot”, “rolling the dice”, “let’s see what happens” towards actually taking system trades then we have a much better chance of executing the system right as well as the money management, position sizing system. This way we are not trying to chicken out or ‘over optimize in real time’ our trading system that has proven it’s self over time.
Once you can execute a good trading system over time with the good money management system that compounds options correctly, then… you can be in line to receive an actual, real JackPOT of a massive trading account!
The tortoise and the hare… Try to go too fast you’ll bust. Slow and steady (with proper options compounding) makes big trading account over time. Be patient enough for you Critical Mass, trading account JackPOT.
Get a good system and think: “Roll the dice”, “Take a shot” for each system deal. Thinking as such tends to put one in a fair state of mind. The system takes care of the entry, the stop loss and the profit taking in addition to the position sizing. The “Take a gamble” state of mind can tend to free you from trying to win 110% of the time, while helping free you up from fear, greed, complacency etc… so you can give your trading system a fair shot at working.
In short, “JackPOT” is a mindset that helps enable us to trade our trading systems right, freeing us up from emotions that can hinder us from trading the right way. You need a system and a mentality for success and JackPOT is a way to go.