Concentrating on the Process Instead of Profits

When people first enter the world of trading, the focus is almost always - making money. Profitable screenshots get shared on social media, stories of winning the lottery with overnight success seem to surface, and it is hard not to get caught up in thinking profits are the single measure of progress. The truth is chasing profits too aggressively at the beginning will safely burn out or lead to blowing up an account faster than anything.

What is really important to focus on - at first - is simply the process. Trading is similar to learning a new trade, The more focus, attention and development that goes into getting the steps right, the more now consistent, time after, time will be. Think of it like learning tennis - If all you care about is winning games from day one, while you have neglected building the correct swing, footwork and timing - like all facets of the market - ignore the fundamentals and the "wins" will never be sustainable.

Here's why the Process Matters

The market is riddled with variables which you have no control over. Prices will move without reason, news will pop out of nowhere and unexpected volatility can rattle the cages of even an experienced trader. But here is what you can control: your risk management, your entry and exit rules, your mindset, your ability to follow a plan.

When you reclaim that stall, and use your attention on things you control, you can move your focus from outcomes to actions.Profit is a byproduct of consistently doing the right things. It's the difference between thinking "I need to make $500 today" versus "I need to follow my rules for every trade today." The latter puts you in a position for growth over the long haul.

Process vs. Profits: A Quick Look

Here’s a simple comparison that sums it up:

A Real World Scenario

Let’s say two friends start trading. Ali is deathly scared of losing profit and is trying to double his account in the shortest possible time. He checks his profits every hour and switches his strategy at the first sign of a bad day. Sara, meanwhile, has built a few short goals for the day, like sticking to her risk per trade, journaling her setups, and not overtrading.

Three months later, Ali is down 50% in his account and is not feeling so great about his trading confidence. Sara has also not made hundreds, but is consistent, disciplined, confident, and has a grasp of her strategy that is better than Ali. Who do you think has a better chance of being a successful trader in the long term? I'm betting on Sara.

Tangible Ways to Keep the Focus on Process

Changing your mindset, of course, is not easy if you are checking your social media, see everybody post profits, and just want to hold onto a single profitable day of trading. But if you allow this experience to remind you of two things, you can shift your focus onto process:

Behavior-Based Goals: Instead of setting a goal to "make $1,000 this month," identify the behavior that puts you in a position to make profits, i.e., "I will stick to my stat-losses" or "I will only take setups using my plan." 

Keep a Trading Journal: Journal what happened in a trade—you took the trade, did you journal your setups on a risk to reward ratio—if you had a reason why you took the trade, did I follow my rules. Over time, it will identify the patterns that you cannot see immediately with money and will identify where you make mistakes versus being lucky on a single trade.

These steps help build discipline and better define progress in trading an emotional market, while money alone will not in the short term.

The Psychological Benefit Factoring in the Process

The second advantage of focusing on the process versus chasing profits, is piece of mind. Chasing profits creates its own pressure and stresses. You force trades, second guess yourself, and look at your emotions to control your actions. Following a process is calming—you know that as long as you stick to your plan, you are not defined by a single loss.

It reminds me of cooking—rather than rushing to get the meal on the table and not following steps in the recipe, you may get lucky on one meal, but that doesn’t mean you’ll be consistent in your outcomes. If you take your time, follow the recipe process for steps, and wait for it to cook in its own time, you will have a consistent and predictable outcome.

Conclusion

At the end of the day, profits are only the scoreboard which tells you if you are currently trending in the right direction, but they do not teach you the skill to remain in a market forever. By concentrating on your process (your own rules, your behaviors, and your learning) you give yourself the best chance to stick around long enough to profit in a sustainable and positive way.

If you find this thought provoking and helpful, and would like to improve your own trading behavior, be sure to check out more articles in the Learn section on Wikilix, to continue to improve your process, and stay inspired on a practical theory that matters.