Discussion in 'Trading' started by ADX_trader, Nov 17, 2002.
How do you make profits?
Sell at a price that is higher than the price at which you bought.
Or buy at a lower price than you just sold...
Do I win anything?
Buy Low And Sell High
Sell High And Buy Low
Buy High and Sell Higher
Sell Low and Buy Higher
Meaning, no options for me....
Trade like it's a job, not like it's your money. EMOTION is the #1 killer of profits. Take emotion out of the game follow a strategy and profits will follow. Well.....maybe.
whats a profit ?
Trade only when the edge is in my favor. Concentrate on good defense - think of taking a loss as playing for better position (stops and re-entry -- commissions are insignificant). Let the profits take care of themselves. Never calculate how much I'm up/down in a open position (way too tempting to take profits too early). Increase size only when closed equity hits a new high. Keep my risk in any one trade to 1/2% of equity. Enjoy the process of trading (think of it as a game against a computer instead of other participants). Remember why I'm trading --- to make money so I can enjoy other things. When I have a larger than average winning streak, I take some money and blow it on fun things (new car, weekend trip to another city, gift to some group that needs help in my locality, etc.).
You sound like a bachelor, acrary. In my case the "fun things" are: mortgage payment, health insurance, kid's clothes.
It's that elusive thing that appears the day after you quit.
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