Author: Chris Hood
Many retail traders get stuck on a rollercoaster of wins and losses.
At the end of the year, they’ve made and lost money. Their trading account size has expanded and contracted.
However, they’ve not realized those profits in any tangible way.
After all that work, what do I have to show for it?
I had to tackle that question many years ago, and after I developed profitable consistency with my trading, I discovered an answer.
Not every trader does this but for me, it was a landmark moment.
Suddenly I didn’t just have a spreadsheet ledger that said I was winning on paper, but I could see my earned money accumulate.
Here’s the trick.
Chief Investment Strategist, Adam O’Dell, says we’re witnessing a new oil boom that is STILL just in its infancy.
Because Adam says there’s a convergence of multiple geopolitical and economic factors coming together in 2023…that will create a brand-new SUPER BULL in oil…
That could send prices higher than any previous peak in history.
When you win, take your gains out of your trading account and move them somewhere else.
For some of you, this might be a savings account. Others may want to buy shares of stock they’re interested in accumulating.
Due to the transfer time from my trading account to my bank account, I prefer to buy shares of a “cash alternative fund.”
This is just some equity that doesn’t fluctuate much in value.
My personal preference is SHY, the Ishares Trust 1-3 Treasury Bond ETF. When I’m ready to bank my profits I just buy a number of shares that’s equivalent to my earnings.
I prefer using this ETF because it doesn’t fluctuate much in value and stays in my account where it’s easier to access.
When I first started using this technique, I noticed an immediate improvement in my morale.
My profits were no longer getting tied up in losing trades.
Rather I could just look at my SHY shares and see how much money I’d made.
As an income trader, I must meet my daily, weekly, monthly, and yearly profit goals. And my method of trading allows me to predict with reasonable accuracy what these will be.
When I first started banking profits I just tried to hit a monthly goal, but this wasn’t enough…so I later put my profits into SHY each week.
I refined this further so that I took care of the bookkeeping at the end of the day.
Now I do it after every set of winning trades.
If you aren’t sitting in front of the computer all day like me, this may not be practical. But decide on a schedule that works for you and stick to it.
It won’t make you a better trader if your plan and strategies don’t work, but it is extremely psychologically rewarding.
And in trading mindset is 90% of the game.
PS – Billioniaires like Warren Buffet, Ray Dalio, and Carl Icahn have invested hundreds of millions and even billions of dollars into oil. My friend, Chief Investment Strategist, Adam O’Dell believes he has identified THE top oil stock of 2023 that could crush the returns of Exxon and hit 100% gains in the NEXT 100 days. Find out how you can profit from this new bull market here.