The Psychological Power of Trading with a Monthly Structure

Trading successfully (at size) for any meaningful period of time is almost impossible without a clearly defined structure in place. More specifically: a structure that can be improved upon dynamically.

Adopting a month-to-month structure is a simple and effective way to remove the power of the past. Last month hardly matters now. With this attitude, we can better execute our plan now, and actively improve it going into the future.

Why a month? Well, it means you consult and update your trading plan twelve times every year. Plus, you can easily overlay your trading calendar with your personal calendar, allowing you to schedule optimally and address potential conflicts for the month before they arise.

This is a powerful way to stay balanced, live in the present, and plan well for the future. Simply by re-evaluating these ten things every month, you can improve your trading by leaps and bounds:

Ten things to rethink monthly

  1. Ensure that your objectives are well put together and still up-to-date.
  2. Your trading environment – does it limit distractions and enable focus?
  3. Schedule enough trading time – think of (and work around) any upcoming events.
  4. Are you giving yourself enough time and freedom to monitor trades properly?
  5. What will you do if you hit your daily, weekly or monthly goal(s) early?
  6. How detailed is your risk management plan? Could you update it at all?
  7. Your daily and weekly routines – are you happy with them? Could they be streamlined?
  8. What’s your plan for the worst-case scenario? Could you be any better prepared?
  9. How do you govern yourself and stay mindful of your own psychology? Is your ego healthy?
  10. Make sure to give yourself some (constructive) feedback, and then move on to next month…

If you can simply commit to probing these topics once a month, and enacting change when and where necessary, you are giving yourself all the necessary ingredients for success.



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