Thursday Trader's Tip: 3 Steps to Implementing the 'Process Over Outcome' Mindset

Thursday Trader's Tip editions offer quick trading psychology advice that can be digested in 5 minutes.

Sep 26, 2024

Watch this edition video at the end of the post.

“The process must be placed before the results to make money in the market.”

We hear this quote all over social media, but as always, the practical component is missing.

What does placing the process above the results mean?

Let me give you three insights on how you can accomplish this mindset in your trading:

#1 Expectations

Nothing can be more dangerous than setting a result-oriented, time-bound goal for your trading. You don't know what the process will bring, and the learning curve is often misjudged.

The best thing you can do is ask yourself if your current processes support the future results you want and then what adjustments can be made.

It’s like running a business; you cannot expect much without proper systems. You can still have a big revenue month, but without a solid foundation, you won't be able to consistently support further success.

For this reason, the healthier way to trade is free from expectations. This is the only state under which you can deliver your full potential.

Freeing expectations means living your life as if you’re not trading, focusing on other sources of income and emotional well-being to fulfill you.

Trading should not be your main source of emotional well-being, that’s quite dangerous for your longevity in the business.

When you balance your life across multiple passions, hobbies, and goals, trading becomes supported by your passion and long-term view, not results and expectations.

#2 Schedule Process Tasks

Just like you schedule your gym slots and other relevant tasks for your agenda, you must also schedule trading process-related tasks.

If you struggle to articulate the task that fulfills a particular goal, it’s not objective or measurable enough.

Everything important to you must be scheduled in your agenda to increase your odds of doing it.

Trading is much about preparation. So don’t only schedule your trading sessions but your backtesting sessions, the journaling, and the performance review.

#3 Process-Based Metrics Over Results

Focusing on the processes is difficult when you lack methods to measure them.

Results are always available, front and center, and for that reason, we trust their feedback. But short-term results are not a loyal representation of your trading skill.

What metrics do you have in place to evaluate: