Trading is simple, but it ain't easy. If you want to stay in this business, leave "hope" at the door and stick to your stops.
you get into a trade, start looking for signs right away that you are
wrong. If you see them, then get out before your stop is hit. Trading
should be boring, like factory work. If there is one guarantee in
trading, it is that "thrill seekers" get their accounts ground
into parking meter money.
traders turn into professional traders when they stop looking for the
"next great technical indicator" and start controlling their
risk on each trade.
Professional traders only place a small portion of their assets into 1 position. Or if they take on a large position, then they strictly limit their risk to 1-2% of their current equity. Amateurs typically place a large portion of their assets into 1 position, and they give it "room to move" in case they are actually right. This type of situation creates emotions that ruin accounts, while professionals are able to make decisions and cut losses because they strictly define their risk.
Professional traders focus on limiting risk and protecting capital. Amateur traders focus on how much money they can make on each trade. Professionals always take money away from amateurs.
Portfolio Return as of 02/09/2023:
2022: -.019% (SP500 -18.01%)
Sunday, July 15, 2018
Bits of Wisdom for the Stock Trader
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