Tag Archives: risk

Getting what you think about and what if your target is hit.

There are many thoughts that pop into your head throughout the trading day. Some are good and some are bad.  One thing to remember is that they are all helpful and provide insight to your internal barometer. You get what you think about.   If you are always thinking about not losing you are going to haveContinue Reading

Thoughts on trading plans.

When I speak about the need for a trading plan it is not because I got it right the first time. I did not have a plan I just did it.  I was told I needed a plan but at that point in my life I was always the exception.  I lost time and moneyContinue Reading

Anatomy of bad market commentary via a tweet.

Trading is personal.  Your DNA plays a part in your trading.  I do not think you can tell someone how to trade or grieve without learning something about them (trade not grieve). With that being said there are thoughts and mindsets that make trading hard.  I do not remember the exact tweet or who said itContinue Reading

If you are right you are doing it wrong.

Being “right” can be a psychological substitute for making money, be careful. You identified a good trade, now execute it. Enjoy it for a second and get back to work, you now have a greater responsibility because now you know what you are capable of. Identify a trade Find a way to break-even Find aContinue Reading

Email: How much should I risk per trade?

From email: “I guess the short of it would be what % of capital should your average trade be? I understand theres so many variables that effect the answer to that question, but still am curious. I’m trading around 40k right now, and have only been trading live for a little over a month. MostContinue Reading

Two reasons this isn’t window dressing.

The Reformed Broker has a piece out today talking about window dressing.  As a technical analyst I am aware of the games that can happen but I can’t ever bet on it.  The reasons why a market moves doesn’t really matter to me. Of course you put things in the back of your mind forContinue Reading

What to do after having a monster day.

Lets face it we are traders for the unlimited upside, having no customers, and no employees.  When you achieve that unlimited upside, what do you do? The first time The very first thing you should do is to order a check.  Take the money out.  Spend some on yourself.  Enjoy it.  You reached the nextContinue Reading

Giving back profits and taking too much risk.

There is no profit too small you shouldn’t take it.  If the market isn’t giving you anything it is ok to peel it off.  Start again.  The best traders get in and out on the best ticks.   This is much easier to do trading multiple contracts because entry and exit risk is not asContinue Reading

Why simulating trading is different from live trading.

Every trader starts off on a simulator, most do well.  I am not for or against simulating trading, it is important. When smacking up against the reality of real money it is important to retrain yourself from the sim mindset.   It is nice to lob up half court shots all day but it onlyContinue Reading

Your state of mind when you take risk is as important as the risk.

I could probably write or talk about risk for days.  As a trader you have to be comfortable with risk.  This often means redefining it. Part of redefining it is knowing your state of mind when you take risk is as important as the risk.  There are times when the risk looks different because ofContinue Reading

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