@PPC you had good intentions but this is ET I read a lot, but I didn't get much out of JS books compared to elsewhere. Buy Support Sell Resistance Trade with Stops Chase Breakouts Has certainly worked over the past 8 months, thanks @Scataphagos
Maybe I am giving away too much, but part of my edge is that I am trading against others who think exactly that: that psychology is "overrated."
Good Evening taowave, Thank you. That is how I trade for myself and do not know anything else. I just do whatever I have to do to win, I just do whatever I have to do to win. Because I want to be rich. And there no way I can be rich quickly, spending time continuing to learn trade. I will dance with the woman I came to the party with! Risk management in trading is stupid and does not work for me. Learning how to continuous trade is my dumbest thing I ever did.
Investor here...Will only speak on that (yeah, do covered calls, but not much else in options). Learn to read a balance sheet!! Go to a junior college/community college and take Accounting 101 or 1A...It will pay for itself over time!! Look at pension obligations, liability, common sense (people are using Apple phones and wearing Apple watches...They would give up their purchased cup of coffee in the morning, before exiting their Apple. I'll end with a quote from Warren Buffett... Buffett said, “General Motors is a huge annuity and health insurance company with a major auto company attached.” Enormous retirement and health care costs weighed down its car business. Because of these heavy financial obligations, it was hard for Buffett to see GM as a clear investment opportunity, even though he acknowledged the company was doing its best to manage the situation.
I hope you weren't advising SML to go to Community College and learn Accounting? Secondly, I would love for what you say to be true, I have an Accounting Degree. But Financial Statement Analysis is a very small part of it. There are so many software packages that will spit out all of that information, that the money is made elsewhere in Industry analysis, Management analysis, Product analysis etc etc. The Stock Market is forward looking - discounting. Accounting is historical.
Hey everyone! Here are some trading principles that have really helped me and might help you too Stay Humble: The market can humble anyone. Diversify: Don’t put all your eggs in one basket. Stay Informed: Keep up with market news. Network: Connect with other traders. Stay Healthy: Physical and mental health matter. Balance Life: Don’t let trading take over. Focus on Process: Execute your strategy well. Stay Adaptable: Change approach as needed. Avoid Overtrading: Only trade clear opportunities. Stay Positive: Keep a good mindset, even when things go wrong.
There are a million ways to make money in the markets. The irony is that they are all very difficult to find. ~Jack D. Schwager This is why I try not to disagree/bash other people opinions in trading even if I found their statement is incorrect from experience because my context/framework maybe different from their's (they don't fully share the whole methodology). Another example is I met a very wealthy cycle/Gann trader (verified because I checked with his remisier which was same as mine). Learnt a little about the basic but decided not pursuit further because I just don't feel it for me. You need to have open mind in trading and pursuit what suit you (may change again and again over time).
Humbly, that list may be too long even if it's correct and contain a lot of good stuff. I'm a big fan of the Market Wizards series by the way. In my view, successful trading is all about having a positive expectancy, i.e., after 100 trades you'll be ahead. So, how can we accomplish that? The key is risk management and maintaining a positive R/R ratio, i.e., you must risk less than you stand to gain. As a minimum, if you risk 1R, you need to bank 2R. If you can do this consistently and once in a while bring home 5R or 10R trades, you're golden. Your win ratio can be way below 50 % and you'll still make money. Even good money! What do most newbies typically do? They'll take profits as soon as they see some green numbers on their trading platform while holding their losses to a full stopout and even increasing them. That behavior will never make you money. Ride your winners and cut your losses. The key is to zoom out a bit and shoot for larger targets, while possibly using smaller time frames for entries. Of course there's a bit more finesse to it and most people will probably not make it anyhow, but that's where the focus should be, IMHO. The other way to achieve a positive expectancy is with a high win rate. If you can do it, be my guest. Not my cup of tea and probably out of reach for most. Current trade on below. Risk was never more than 3 points and I added a bit on the way as the market proved me right! If I took a full stop the loss would be small. By now, the risk is removed from the trade. If I get my target, that's a 10R + trade. If I'm stopped, I'll probably look for re-entries in that area if I still like it, but still making sure I use small stops and don't go in with full size at once. Once in a while you'll get it wrong and if you go all in at once you'll very quickly lose a lot of money. So, losing money is also a choice.