In this week’s episode I look back at the key lessons and 5 components for traders
- I had a giant goal, which was completely unreasonable
- Outcomes based
- No plan
- 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)
- 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 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
- 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
- I read a book everyday
- I have 18H00 appointment with my domestic watchlist (Resi and Finings index)
- I only take trades that the 7/21 System give on those two indecies.
- 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.
- 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.
- 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.
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