For Business

Trading Psychology

What Process Over Outcome Means in Practice

Process over outcome, in practice, means grading the month by four counts, the picture, the size, the stop and the line, and reading the money rather than grading it. This paper shows you the four counts for an example month, 79 of 80, and why the score would be the same on a losing month; the idea as a rowing crew that rows the stroke and reads the margin at the line; the process as a hand mill whose handle is turned the same every day; a stamp card with a stamp for every trade done right; and the Trade tab on your platform, read from the columns that do not move.

Difficulty
Advanced
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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The process as four counts

Process, when it has to be measured, is four counts. Trades taken with the plan's picture behind them, of trades taken: 20 of 20, with these as example figures. Trades at the rule's size: 20 of 20. Stops left where the plan put them: 19 of 20. Journal lines written at the time: 20 of 20. The process score is 79 of 80. The outcome is plus 140, and the score would be 79 of 80 on a month that made minus 140, because the four counts are things done and the outcome is a number the market wrote. Process over outcome means grading the month by the counts and reading the money, in that order, every week.

A rowing crew

Picture a rowing crew. The stroke is theirs: the same length, the same rate, every one, and it is the whole of what the crew controls. The water and the wind are not theirs, and the margin at the line is the stroke plus the river. A crew that rows for the margin shortens the stroke when they see the other boat, and loses the stroke, which was the only thing they had. Process over outcome is rowing the stroke. The finish is read at the line, afterwards, and it was never in the boat, which is a thing every crew knows and every trader has to learn.

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