Reader Question: “What are your thoughts on stopping each day at a daily profit target?“ Firstly, can I be a little harsh and say that this should not be a question. Test the idea on your own data. Look back at the last several months of trading and ask, “How would the equity curve change…
So very, very true: “Sometimes you’re going to have games where you just have to grind it out. And the teams that can find ways to win these type of games are going to be successful.” – Candace Parker, Professional Basketball Player, Chicago Sky (WNBA) And so very applicable to trading. Let’s create a trading…
I make it a practice to never recommend any particular market as being suitable for your trading. It's none of my business what you choose to trade. I don't offer financial advise and to do so would be completely irresponsible as I have no insight into your individual needs or circumstances. (For more, see…
I had an interesting email exchange with a trader a couple of weeks ago, who is struggling with occasional massive losses. I've had the opportunity to speak to a LOT of traders over the last 8 years of writing these articles. You'd be surprised at how common this problem is. We discussed several options…
I see far too many traders destroy a session through fighting the market. Again and again and again. You need to break the pattern. Try implementing this rule: Two Attempts – Then Reassess! After two attempts at a trade idea, if it hasn't worked, it's clear that something is not right. You're not…
Before you even think about strategy… Reduce the risk of single trade catastrophic failure. Stop losses are essential. If you think you can operate without them, leave my site now. Unsubscribe. Professional traders respect the risk within the market. If your platform does not allow for automatic submission of stop loss orders when your entry…
Last week we discussed my thoughts on trading a small account with one contract. See here if you missed the article – https://yourtradingcoach.com/trading-business/trading-a-small-account-with-one-contract-part-one/ We finished up by stating the following: It doesn’t matter which management style you choose; a higher probability smaller win target (like my “part one”) or a lower probability larger win…
When I receive two questions on the same topic within one week, I know that there is a topic I’ve neglected to discuss in sufficient detail (or at all). So it’s time to address the issue of trading a small account with one contract. Question from NJ: Quick question: Can you touch upon the…
Expect breakeven trades… it's just part of the game! Expect many small losses… it's just part of the game! Expect many small wins… it's just part of the game!
One of the most common themes I see in emails is a tendency for traders to focus too much on the individual trade. Every day… "I can't believe this trade lost. Can you tell me what I did wrong?" Never do I get the following… "Looking at my longer term stats as they relate to…
