Your thought process going into a trade

Discussion in 'Educational Resources' started by shotstakovich, Oct 18, 2016.

  1. Visaria

    Visaria

    LOL...100 reds in a row indicate a bent wheel.
     
    #21     Oct 19, 2016
    KingOfClubz likes this.
  2. Buy1Sell2

    Buy1Sell2

    FALSE. --Prudent Risk Management is the only true edge in trading.
     
    #22     Oct 19, 2016
  3. Buy1Sell2

    Buy1Sell2

    The fact that most folks don't believe this is not surprising, given the results that most come away with.
     
    #23     Oct 19, 2016
    Handle123 likes this.
  4. Yes this makes sense, I guess I am still at the stage of trying to fully understand what trading styles there are, THEN knowing which one to refine as my own.
     
    #24     Oct 19, 2016
  5. Your thought process going into a trade -> need to know what drives the market quality, and they are the market liquidity and market volatility.

    Rule1) Any system that did not take into account these two, will generate inconsistent results. And the risk management will complement your system - and the risk level will depend on you.

    Rule 2) trade on the dominant trend, if you're not able to identify when the dominant trend begins, you will generate inconsistent results.
     
    Last edited: Oct 19, 2016
    #25     Oct 19, 2016
    profitlocker likes this.
  6. bone

    bone

    Honestly, you need to commit the same energy and focus to your protocol for sitting with a trade (I.e. Trade management) as you do the conditions for entering a trade. It makes or breaks trading careers.
     
    #26     Oct 20, 2016
  7. The thought process is where do I enter the trade, where will I exit the trade if I am losing money, and where will I exit the trade if I am making money.

    A profitable or losing trade is consider successful if the trade is take per some set of rules, plan, or any reason before you take the trade. Even a loser trade is successful if you understand why you took the trade and comfortable with the risk.
     
    #27     Oct 20, 2016
    Alpha Trader and KDASFTG like this.
  8. recession2016,

    Risk management is not an edge, its just monitoring your money. Anyone can or will eventually learn this after enough losses or wins.

    Edge in trading is what makes my trading system create less losses and more wins technically. Edge is what makes this trade I am about to take have high probability of winning then my competitors.
     
    #28     Oct 20, 2016
    KDASFTG and humbletrader2016 like this.
  9. That was well said.

     
    #29     Oct 20, 2016
  10. bone

    bone

    From what I've seen over the years, I have to disagree with you on this point. You give too much credit to your fellow human beings.
     
    #30     Oct 20, 2016