i am more like above. would add 5. devise trading to fits in your life schedule and not other way around. This is for me around 1 hour a day. 6. put in a bet and enjoy it. 7. Do not listen to anyone how to do things. I use 10% of the highest balance equity bets. So 10 net losers I am done. 1% is for HTF. 1% makes me sloppy & sleepy. 8. make effort to produce 70%+ winners at 1:1 risk reward. 30 trades a year is fine. Slow and easy. Enjoy. 9, Reward yourself.
Yes, that's what my trading plan is based on, ID'd reasons for price swings. But I don't care about price running back and forth in the middle of a price bar that hasn't closed yet. It'll either hit my stop loss, reach my target (where I can choose to hold for more), or hit a set of stop-and-reverse orders if indicated. I've heard from and observed many traders who quickly move stops to break even on trades that immediately run in their favor. In their mind, they feel they are protecting themselves against unnecessary losses. When a trade immediately runs in your favor that's a pretty good sign you've just joined the winning team. By moving your stop to break even, you're not protecting against unnecessary loss, you're denying necessary gains. I've never seen these sorts of traders exit a trade early that immediately moved against them. Heck no, they hold that baby until the bitter end. If you hold losing trades for the full loss, you'd better have mastered the mental game of holding favorable trades for the full profit (or more). If I moved my stop to break even as quickly as I've seen many traders do, yesterday alone I would've denied myself 98 ticks of profit on oil futures. Wow, you distilled my 100+ words into just 4. I'm humbled.
yep, when you're flat and planning it all out you had a risk reward in mind. If you start moving stops around in the heat of battle, especiallly to breakeven then you have just messed up your risk reward ratio.
I recently read a book, "Thinking Fast and Slow," that talks about how the brain works. System 1 is the intuitive snap judgment and system 2 is the analytical problem solving part. While the necessity to have a trading plan, as well as react to price, has been discussed I never heard it articulated to a point that made sense. Now it does. When I am stuck trading while my brain is in system 2 I can't part with the plan to react to price because I'm too busy predicting where it 'has to go.' When I trade in system 1 without having a plan in place the bigger picture isn't accounted for and I'm far too easily shaken out or ready to take off a winner. IMHO the key is the ability to flow back and forth between the two. To have 'flexibility' that I've heard RN and others talk about. Interesting.
there is no tips on the mental game for small traders. the reason is, u are under capitalized and have not trade in the "house." treat trading as las vegas
the best tips on the mental game for small traders will be: get a higher education degree (MIT) and work in the house work in the house and learn the mental game. When u graduate in the "House" u be able to open an account $500,000. Learn the game in the "House" and not by all these fake teachers/educators. HIGHER EDUCATION!
BD, Flexibility Ability to flow from one TF to the other â always knowing how price on the smaller TF â is moving within the larger TF Ability to switch from long to shortâ¦. short to long â without hesitation Ability not to judge, nor form an opinion â but simply go along Ability to take small losses quickly... but be bored stiff while waiting for a profitable move to hit a target... or a setup to emerge Flexibility taken to the extreme â you simply become one with the mktâ¦, or more specifically â one with the price of whatever youâre trading Think of the freedom..... ================================== Whenever I lose â it is not because price went against me⦠It was simply because I was not on board with price Silly me ================================== I trust price so muchâ¦., that if God himself came down and told me to enter one way or the other⦠and price told me differentlyâ¦. I would have to decline him⦠respectfully of course â but decline him nonetheless ================================== btw â Thank You for mentioning that book Sir â think Iâm going to read it RN