In my article "5 Simple Steps To Profit", I referenced the importance of the trader having a proper mind set. In this article, I thought that I would spend a little more time on this subject. In trading, like in any other endeavor, a person must spend a great deal of time working on their 'business'. Yes, I said business. Unfortunately, many traders approach trading with a lackadaisical attitude, not really caring if they make a profit or not. They take a trade because they are bored, they just want to see if it will work, or they have no real set of established rules. This is a sure path to failure. Most traders don't make money trading. The main reason I think this is so is because they don't treat trading as a business. Would you start a brick and mortar business without a plan? I don't think so. That is the reason it is so important to have a plan of action, a set of rules. Then and only then can you evaluate your plan from time to time and see if you are adhering to that plan.

Here is what I do:
1. Every afternoon after the market closes, I spend time looking over that day's chart (you will see my commentary and anaylsis on the day's market action every day here on my blog under the 'Catches Of The Day' category).

2. I look for the various set-ups (bobber strategy, trend line break, trader's trick) that the market presented me.

3. I analyze the trades that I didn't take ('the ones that got away' in the category area) as well as the trades that I took that lost money ('flounders').

4. I look for mistakes that I made, things I did right and trades that I took that were right in judgement but didn't work out. Yes, not all trades that set up correctly make money (that is the reason for protective stops).

The point is that if you are serious about making money as a trader, time must be spent on re-viewing the day's market action every day.

Treat trading like a business. Evaluate your performance everyday. Always be objective about your trading and I think your performance will greatly improve.

Here's to catching a whopper.