This is similar to asking “How fast will I be able to learn a Piano?” While the equity curve of majority of us goes through ups and downs, generating a consistent return is a different game!
I had previously written about mastering a trade setup and that has a lot to do with your involvement in the process of trading
When we try to gauge the kind of returns we would be able to make while swing trading , it hints to a “MONEY FIRST” approach which can be a very dangerous thing
Comparison of Trading With a Business
Like a Business, the best we can do is to try and curtail costs, make the best product, train the sales team and have a very seamless customer service experience.
Does this mean we will remain consistently profitable?
External factors like competition, customer tastes, market needs etc keep on changing and impacting the business
Similar to this, in swing trading the market environment, participation and randomness of outcome make it futile to even try to predict the returns which is not in our control
This maturity and understanding comes with time and a PROCESS FIRST approach
High Dependency on Market Environment
Once you start judging the market environment , you would understand that when the wave gets going you are easily able to fetch 10,20,30R moves with decent allocation but when the selling pressure hits getting 5,10R also becomes difficult
Also, you don't want to risk much just to achieve high returns - That is a trait of a LOSER
How long will the market be favorable?
How long will the trade move in my favour?
How much gain will my trade give?
All these questions are mere predictions and hold no value.
Hence, it is not only important but also a wrong mindset to think about RETURNS before acing the PROCESS
Comments