Twenty Reasons Why My Trading is Profitable

Twenty Reasons Why My Trading is Profitable

 

Twenty Reasons Why My Trading is Profitable

                                                                                                                                                                                                                                                                                                      Here are twenty things I do that make my trading profitable over the long term.

  1. I focus on trading only a few ETFs and stocks each year and focus my efforts in how to best capture any trend that emerges from one of them.
  2. I keep a very small watch list and remove items that are too volatile or range bound for my trading style.
  3. I am very quick to cut losses short, I hate losing money.
  4. I am very patient with winning trades and will let them run as far as possible until I have a good reason to exit. I have stops placed in areas that if prices go it shows that I may be wrong about my entry. I trail winning trades with stops to bank paper profits on reversals.
  5. I trade actual price action not my own opinions, I am reactive not predictive.
  6. I use moving averages and price levels as my technical indicators.
  7. I go to cash and take a risk off stance when prices start swinging wildly until volatility settles down and a break out occurs of a resistance or support.
  8. I try to never risk  more than 1% of my total trading capital from my entry point on any single trade. 3% total AUM  risk exposure has been my maximum this year in the past I have had 6% AUM total risk exposure.
  9. Every year I have reduced my maximum draw downs in my trend trading accounts.
  10. I trade multiple accounts and systems so I am diversified in methods and can benefit from the one that is most conducive to the market environment. 
  11. My best trades are at the opening and closing hour, I tend to lose money when I try to actively trade all day.
  12. I trade off the daily chart only.
  13. My time frame can be one day or over a month depending on the strength of the trend.
  14. I trade my own methods and I am not influenced by other traders.
  15. I try to set my entries and exits and stop losses and trailing stops outside the areas of just noise. I want a break out or a bounce that really signals me to do something.
  16. I trade position sizes that are mentally comfortable I try not to stretch myself into stressful situations with large position sizes.
  17. For me one trade makes very little difference to me my concern is the next 100 trades and a long term outcome. 
  18. I write my blog, author books, and participate in social media primarily to keep myself self learning and growing as a trader.
  19. I have read and studied over 300 trading/investing books,   hundreds of charts, and learned much from interaction with some successful professional traders.
  20. I believe the secret to my profits have had more to do with the risk/reward ratio, the management of risk, and trading with the flow of trends more than anything else.