Five Trading Steps

  • 1. Define risk
  • 2. Define a trade style that matches personaility and beliefs
  • 3. Define one or two strategies for choice of style
  • 4. Back test and forard test method
  • 5. Trade with partial risk and earn the right to increase risk.

Wednesday, July 8, 2009

Quote

In discussing a situation with a fellow client I thought I would make a post as a Quote Today.

The Un-willingness to accept a Small Loss when a Trade is NOT working

AND

The Fear of Missing a Move is the two main causes of Trader’s Mortality!

Stay discipline to your trading process, if you do not have a process, you are making trades on hope, fear, and greed. Make sure your process indentifies setups you prefer to trade and then indentify that your setup has a winning probability. If you do not have this process indentified, than you trading system is in-complete. Once you have a system in place, it is only your willingness to follow that system that will protect you from the two emotions mentioned above.

Thanks!

Kerry

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