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