Morning coffee always tastes better when things working
— DK1 (@canuck2usa) November 21, 2014
“Our greatest power is that we know that we don’t know…" – Ray Dalio.
— The Chartist (@thechartist) November 21, 2014
— Jon Boorman, CMT (@JBoorman) November 20, 2014
There's a lot of magical thinking regarding trading. Bottom line: This is a business of probabilities and risk management.
— Trade Like a Casino (@TradeLikeCasino) November 6, 2014
Difference between great traders & the rest isn't magic entry points, instead they're better risk managers & better at position management.
— Trade Like a Casino (@TradeLikeCasino) October 31, 2014
@Mella_TA in this game , if your not making mistakes your not playing, paper traders
— TAMAYO (@LASTCOKE1000) November 21, 2014
I do not believe u can catch the full 100% regardless how good u are. If u catch at least 60% u are winning. $SPX
— Mella (@Mella_TA) November 21, 2014
— Ryan Ferguson (@Ryan_J_Ferguson) November 21, 2014
— ETrader (@WallStreeTopGun) November 20, 2014
@SJosephBurns does not seem like anyone wants to take a profit ever. That in itself is scary.
— TakingStock614 (@takingstock614) November 20, 2014
The average hedge fund will collect $0 on the "and 20%" part in 2014
— zerohedge (@zerohedge) November 21, 2014
Trading results become more consistent once you realize that 'making money/not losing money' is more important than 'always being right'
— traderstewie (@traderstewie) November 21, 2014
@SJosephBurns lol. resistance is futile,mortal
— randall millard (@randadtrade) November 21, 2014
As a trader, your #1 goal is to keep your current trading capital safe and secure. Your goal as a a trader is to make money and not lose money. Many new traders lose their trading capital in the first year, but these ten tips will help you keep your capital intact so you can make it grow.
- Do not start trading until you have fully educated yourself. Trading tuition is expensive when you trade first and learn later.
- Do not trade an account so small that commissions will end up being a big drag on your returns.
- Do not trade until you have a well developed trading plan.
- Trade a position size that does not cause your emotions to become so loud you can’t hear your trading plan.
- Only trade in markets you fully understand.
- Only take valid entry signals and do not chase. Let your entry point trigger first.
- Only trade in liquid markets so bid/ask spreads do not devour your account.
- Never risk losing more than 1% of your total trading capital on any one trade through proper position sizing, and by placing stop losses at the correct price levels.
- Never expose your total trading account to more than a 3% loss of total trading capital at any one time, on one day.
- Never move a stop loss. Take the exit the first time it is triggered.
If a new trader wants to be a successful, they will need to treat their trading like they would operate a profitable business. Many traders lose a lot of money by approaching trading like it is a hobby. In trading, making money is the goal, and must be kept at the forefront of a trader’s mind if they are to be successful. Fun and excitement in trading can be expensive entertainment. The reality is that most of the time, trading is boring. A trader must treat the market like they would any other business, utilizing discipline and great care to grow their capital and be successful.
- You can’t open your trading business until you have a full business plan.
- Your inventory is your current positions; you have to buy them for less than you intend to sell them.
- Your customers are who you sell to; they have to be willing to pay more than you bought your positions for.
- Your mind is the manager of your business; you can’t let pride, fear, or greed lead to an unprofitable mistake.
- Your business must have insurance to manage risk. Stop losses and hedges are your insurance against big losses.
- Location is everything. You must conduct your business where there are ample buyers and sellers so you don’t get stuck with positions that no one wants.
- Your current positions are your employees. You have to keep the ones that produce gains, and fire the ones that lose.
- Expansion of your business can only happen after your first location is successful. Once you have mastered a system of entries and exits you can add new markets and systems.
- Your trading capital and your positions are your inventory. Lose that and you are out of business.
- The only reason to be in business is to make money. If you don’t make money, you need a new business plan.
Introducing the Monthly New Trader University Newsletter!
The signup is at the top of this site. Receive my monthly email newsletter by entering your e-mail in the space provided and clicking subscribe.
Once a month you will receive:
- A trade example step-by-step of my best trade of the month.
- My current positions with exits and targets.
- Chart analysis of the monthly price action on the S&P 500 index.
- My favorite monster stock.
If you are interested, sign up. It’s free! And don’t worry, I hate spam, too.