I can’t decide for you (the trader) on how tight or wide your stops must be, but I can explain how they (tight or wide stops) will affect your trading. And during the process of explaining their differences, I hope to guide towards better stop placement. This is discussed next.
Category: Tips / Psychology / General
trading related writing
Mastering the Market Cycle: Getting the Odds on Your Side, is book written by legendary investor and co – founder of Oaktree Capital Management, Howard Marks. As the book’s title implies, its emphasis is mostly on different market cycles and how to make them work for you. But the book also contains many other market wisdom, such as his opinion on uncertainty and risk in markets.
Hard work and persistence in trading, just like with any other worthwhile endeavor, is often required for success. In this post I draw from a quote of the late William J. O’Neil to elaborate.
New traders often start out trading with what is known in the trading community as trading with scared money. This might not the best way to start trading and its often one of the reasons traders never get far. Let’s delve in.
One of the first things you’ll here when it comes to successful trading is sticking to your stops. While this is great advice, there is another part to the equation for profitable trading: Sticking to your profit targets.
Newer traders love to take on big risk. The idea is that the bigger the risk they take, the more money they stand to make.
Categories
Expectancy
In this post I will explain the concept of expectancy in trading, an important number to track if you’re serious about your trading.
If you’ve been trading for a while, I’m sure you’ve heard about the book Trading in the Zone by the late Mark Douglas. This post is about the 5 fundamental truths of trading which he wrote about in his book.
All traders have taken subpar trades. The level of experience doesn’t really matter… and chances are that you’re going to take them again. Mediocre / subpar trades are just one of many things that’s a hindrance to the performance of traders.
Without a doubt, there is a leaning curve in trading. For some the learning curve will be steep (difficult), and for others it will be shallow (easy / easier).