Guiding Light

Here’s what we’re going to cover

• Trading process explained - What is a trading process

• Why we setup a trading process - You will fail if you do not get this right

• What goes into a trading process - Template to start using

• Best practices - How to use and improve your trading process

What is a trading process?
 A written document that is a living, breathing
outline for how you operate your trading business
Why do we setup a trading process?
 The Importance of a Trading Process
• The difficult balance with trading - The idea that there is a way to trade where we “buy here and sell here” is not reality. Trading
requires some “trading I.Q.” and discretion. Most struggling traders are too rigid and not able to make good decisions in the moment
OR they rely too heavily on discretion and make many trading errors throughout the session.
 The Importance of a Trading Process
• The difficult balance with trading - The idea that there is a way to trade where we “buy here and sell here” is not reality. Trading
requires some “trading I.Q.” and discretion. Most struggling traders are too rigid and not able to make good decisions in the moment
OR they rely too heavily on discretion and make many trading errors throughout the session.

• The Market has an element of randomness - As traders, we are agreeing to operate inside of a random environment. If we choose to
do random actions in that random environment we are guaranteeing our failure.
 The Importance of a Trading Process
• The difficult balance with trading - The idea that there is a way to trade where we “buy here and sell here” is not reality. Trading
requires some “trading I.Q.” and discretion. Most struggling traders are too rigid and not able to make good decisions in the moment
OR they rely too heavily on discretion and make many trading errors throughout the session.

• The Market has an element of randomness - As traders, we are agreeing to operate inside of a random environment. If we choose to
do random actions in that random environment we are guaranteeing our failure.

• We have different levels of awareness - The version of you that is listening to this session or the version of you that is preparing for the
trading day is not the same version of you that is in a live trade up against the hard right edge of the screen.
 The Importance of a Trading Process
• The difficult balance with trading - The idea that there is a way to trade where we “buy here and sell here” is not reality. Trading
requires some “trading I.Q.” and discretion. Most struggling traders are too rigid and not able to make good decisions in the moment
OR they rely too heavily on discretion and make many trading errors throughout the session.

• The Market has an element of randomness - As traders, we are agreeing to operate inside of a random environment. If we choose to
do random actions in that random environment we are guaranteeing our failure.

• We have different levels of awareness - The version of you that is listening to this session or the version of you that is preparing for the
trading day is not the same version of you that is in a live trade up against the hard right edge of the screen.

• In the moment is not the time to come up with a plan - In the heat of the moment, if you are trying to come up with a plan or trying
to make decisions, you have already lost. You must have certain actions already figured out.
 The Importance of a Trading Process
• The difficult balance with trading - The idea that there is a way to trade where we “buy here and sell here” is not reality. Trading
requires some “trading I.Q.” and discretion. Most struggling traders are too rigid and not able to make good decisions in the moment
OR they rely too heavily on discretion and make many trading errors throughout the session.

• The Market has an element of randomness - As traders, we are agreeing to operate inside of a random environment. If we choose to
do random actions in that random environment we are guaranteeing our failure.

• We have different levels of awareness - The version of you that is listening to this session or the version of you that is preparing for the
trading day is not the same version of you that is in a live trade up against the hard right edge of the screen.

• In the moment is not the time to come up with a plan - In the heat of the moment, if you are trying to come up with a plan or trying
to make decisions, you have already lost. You must have certain actions already figured out.

• Our memories are ridiculously flawed - Most of us assume that our memories are these power things that recall information the way it
really happened. This is not true. We need to keep important information top of mind.
What goes into a trading process?
Let’s go through a template...
Best practices
 Best Practices
• Do your first version - If you do not put in the effort to create a trading plan, this information will be purely academic and will not
improve your trading.
 Best Practices
• Do your first version - If you do not put in the effort to create a trading plan, this information will be purely academic and will not
improve your trading.

• Be prepared to make adjustments - The purpose of a trading process is not too get it right but to get it started. This is a living,
breathing outline for you to follow and improve.
 Best Practices
• Do your first version - If you do not put in the effort to create a trading plan, this information will be purely academic and will not
improve your trading.

• Be prepared to make adjustments - The purpose of a trading process is not too get it right but to get it started. This is a living,
breathing outline for you to follow and improve.

• Make one adjustment at a time - Be very intentional with your changes. It will be impossible to make constant improvements if you
are changing too many variables.
 Best Practices
• Do your first version - If you do not put in the effort to create a trading plan, this information will be purely academic and will not
improve your trading.

• Be prepared to make adjustments - The purpose of a trading process is not too get it right but to get it started. This is a living,
breathing outline for you to follow and improve.

• Make one adjustment at a time - Be very intentional with your changes. It will be impossible to make constant improvements if you
are changing too many variables.

• Do not judge your trading or the process without sufficient data - You need to gather a minimum sample size of trades before you
judge if something needs to change. The minimum sample size I would use is 30 trades.
 Best Practices
• Do your first version - If you do not put in the effort to create a trading plan, this information will be purely academic and will not
improve your trading.

• Be prepared to make adjustments - The purpose of a trading process is not too get it right but to get it started. This is a living,
breathing outline for you to follow and improve.

• Make one adjustment at a time - Be very intentional with your changes. It will be impossible to make constant improvements if you
are changing too many variables.

• Do not judge your trading or the process without sufficient data - You need to gather a minimum sample size of trades before you
judge if something needs to change. The minimum sample size I would use is 30 trades.

• Print off your trading process - You will have a better connection with a physical copy.
 Best Practices
• Do your first version - If you do not put in the effort to create a trading plan, this information will be purely academic and will not
improve your trading.

• Be prepared to make adjustments - The purpose of a trading process is not too get it right but to get it started. This is a living,
breathing outline for you to follow and improve.

• Make one adjustment at a time - Be very intentional with your changes. It will be impossible to make constant improvements if you
are changing too many variables.

• Do not judge your trading or the process without sufficient data - You need to gather a minimum sample size of trades before you
judge if something needs to change. The minimum sample size I would use is 30 trades.

• Print off your trading process - You will have a better connection with a physical copy.

• Read through your process everyday and keep it in view - Read over your process everyday before you begin trading and keep it in
easy view so you can reference it throughout the trading day.
 Concluding Today’s Training

• Trading process explained - What is a trading process

• Why we setup a trading process - You will fail if you do not get this right

• What goes into a trading process - Template to start using

• Best practices - How to use and improve your trading process

 Your Action Items

❏Create your trading process 1.0

❏Print it out and put it in easy view while you are trading

❏Read everyday before you start trading and reference it throughout your trading session
Let’s Get After It!!