Village Trader Episode 5 My lessons so far

In this week’s episode I look back at the key lessons  and 5 components for traders 
 
 
Goals
Before
  • I had a giant goal, which was completely unreasonable
  • Outcomes based
  • No plan
Now
  • My goal is simple- A perfect trade
  • Keep and update my journal regularly
  • Read one trading book per month.
  • Focusing on the weakest link (Me)
Money management
Before
  • I simply didn’t have any money management or risk management what’s so
  • I was the typical losing trader, I let my losers run with hopes that they would turn back in my direction until usually
  • Sometimes I would literally take a trade and hope for the best
Now
  • Now I subscribe to the mantra of only risking 2% of capital per trade
  • I am rigid with my stop loss, and I have no opinions on where my stop loss should be. I just place it where my predetermined plan tells me to put
  • My position sizing also adheres to the 2% rule and I don’t compromise
Discipline
Before
  • To be honest I had no process or plan to be discipline to.
  • I have key fundamental goals and processes that bring me closer to my goals
Now
  1. I read a book everyday
  2. Exercise
  3. I have 18H00 appointment with my domestic watchlist (Resi and Finings index)
  4. I only take trades that the 7/21 System give on those two indecies.
Resources
  • I was trading an account far too small and I had unrealistic expectations.
  • Still don’t have enough capital to trade with discipline and proper risk management.
  • That’s why I am trading a demo, to work on myself while I keep slowly building up the required capital to trade with discipline.
System
 
Before
  • In all honestly I didn’t have a system. I was jumping from system to system.
  • Essentially I was caught in that vicious cycle of looking for a holy grail system that has 100% win rate. Which none exist.
  • And jumping from timeframe to timeframe.
Now
  • I only trade the one system, the 7/21 system
  • Only on a daily chart
  • Only on the Fini and the Resi index
  • Only the mini contract.
  • I now keep it simple
  • Trading in the zone -Mark Douglas
  • Trading for a living – Dr Alexander Elder.
Visit : village trader.co.za

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