Hi, my name is Eli and I am recovering P/L watcher. I would watch others trade and they would be explaining something and I would miss it because, let’s face it, money is more interesting than how to earn it. Once I had my own account, I would be watching my P/L move and not watching what was happening on the chart. On the attractive scale P/L is a 10 and charts are maybe a 2. Staring at your P/L is like staring into the Sun, it makes you blind.
I am not saying you should ignore profits or loss at all. However, no performance activity allows you to look at the score and perform well. Imagine a baseball player checking his current batting average as the pitcher throws the ball. Or the running back looking at the jumbotron to see how many yards he has rushed for while trying to outrun a defense.
It is hard to not stare at the P/L but it is necessary sacrifice. Without fail, the students that come in for training almost always have their eyes in the wrong place. No matter if it is a simulated account or not we catch them staring at the P/L, field of view is very important in trading. P/L should not take up valuable space in your field of view.
P/L is an output not an input.
@IndependentTrdr made a good point with the sports analogy. I always check the score at time outs and half-time.
Also note that this post was written in the context of trading one product in a short term. For the most part, I am always know where I am within a hundred bucks if not less. The main point I was trying to get across is that staring at money will pull your concentration away. The point of trading, to me, is to make good trades. The money follows. Money is emotional, charts aren’t.
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