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.
Excerpts from an editorial by Nick Searcy, actor, director and writer: The most overused quote in 21st Century conservative columns and sp...
Most Read Posts
Climate change activists are not just interested in reducing carbon emissions in order to "save the planet." Their underlying desi...
Article from schwab.com Individual Retirement Accounts (IRAs) can be a great way to save for retirement because of the tax benefits they ...
In my lifetime, I have bought six houses, and sold five. I currently live in the sixth, which was new construction, which was an adven...