Thursday Trader's Tip: 5 Ways to Apply the 'Quality Over Quantity' Philosophy
Thursday Trader's Tip editions offer quick trading psychology advice that can be digested in 5 minutes.
Watch this edition video at the end of the post.
This edition of how to focus on quality over quantity is not the typical “focus on high-quality setups” information.
We’ll be exploring relevant ways of doing so that have not been discussed enough.
#1 Double-Down on Your Strengths
Every trader has different skills, experiences, and psychological traits.
Doubling down on what you're naturally good at allows you to refine your strategy to align with your strengths.
A solution-focused approach is the key to overcoming drawdowns and losing streaks, as your unique strengths build your trading character.
More on leveraging your strengths for trading success here.
#2 Focus on Your Strategy Strengths
Just like your unique strengths must dictate some of your strategy’s features, you must make the most out of those.
It will be challenging to transform a low win-rate strategy into a high win-rate strategy. Just like a low RR strategy can suddenly turn into a high RR. We must hone our strategy's strong points and, most of all, recognize they also have weaknesses. It’s part of it.
For example, some trading strategies have precise, accurate entry points but a low win rate. Others have less precise entry points with low risk-to-reward ratios but a high win rate.
Some strategies are suitable for scaling in at different entry levels, while others are better off with entry locations taken at full size.
Once you know your strategy strengths, you can use the same principle to focus on maximizing them rather than wasting time trying to make them perfect.
#3 Focus on High-ROI (Return On Investment) Activities
Focusing on high return on investment activities means understanding the set of actions that produce your best-performing days.
What are these for you in your pre-session routine, during the session, after the session, and even during recovery time?
By knowing them, you can eliminate the fluff and keep what’s essential in your schedule. That’s living intentionally.
#4 Risk Management
It isn’t worth it to double down on strengths without proper risk management.
Risk management can more easily transform a poor strategy into a profitable one than a great strategy, which can generate profits without risk management.
Mark Minervini proved just that with the experience he revealed in his book "Trade Like a Stock Market Wizard." He demonstrated how even a random process like flipping a coin—heads you buy, tails you sell—can be profitable if strict risk management rules are applied.
#5 Cultivate Purpose and a Balanced Life
When we go beyond to apply the “quality over quantity” mindset not only for the strategy but also for the trader, we’re taking big steps to improve performance.
This mantra extends beyond charts into your life. Recovery is an essential part of performance, and most overlook that.
It turns out that the traders with the most balanced and fulfilling lives on the charts are the ones capable of sustaining long-term results.
Notice I said long-term. They might not be the ones with the most profitable days, but they’re surely the ones who survive the longest, and that’s all that matters in trading, isn’t it?
More on creating a strong support system here.
Ask yourself: Am I living according to my life priorities? If not, what can I change to align my schedule more with them?
Peaceful trading,
Sara
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