A friend of mine asked me if I was an aggressive or a conservative trader. I think it’s because I’m actually quite an aggressive trader. I have 35 positions on. There has been more. The portfolio is geared 12 times. However there’s a catch. My edge is risk and money management. Even though there’s a …
Trading is one of those industries with tons of sporting analogies. Perhaps it’s because elite trading is a lot like playing sports at an elite level. One of my favourite analogies I resonate with a lot, is the cricket analogy. Trading is like batting in Cricket test match. The game goes on for a while, …
Risk If we start from the premise that risk is the difference between expectation and reality. A trade’s risk depends on your expectations for the trade. If you expect to make money on the trade. Your risk is that you don’t. I don’t know of many people that take a trade for the purposes of …
Understanding your edge It’s no secret that in order to be sustainably and consistently profitable. You need a mathematical edge in the market. At the core of your edge 1 important rule should never be broken. If it is, it essentially means you don’t have an edge. The sum total of your winning trades, needs …
It’s difficult to trade and have a 9-5 at the same time. However, it can be done. Robust trading systems and setups can within reason work across all time frames. Some though they work well across all time frames. They turn to work even better on the longer time frames than in shorter ones. Some …
Many professional traders recommend some screen time, as it helps develop an intuition and an edge. Getting sufficient screen time takes a lot of time. As swing trader, getting your 10,000 hours in actively can take years. I recently discovered a feature on trading view: “replay”. As the name suggests, it lets you replay the …
“It takes a lot of showing up, for you to be lucky” – Krista van Heerden. As a trader this is a concept you need to familiarize yourself with. We often hear overnight success takes 10 years. When placing a trade, you have no clue whether that particular trade will be a winner or a …
So, I designed an experiment with my niece to see the impact risk management has on a trading system. To ensure the odds are on her favor, I gave her a 1:2 risk: reward system over 30 tosses. She had to guess on the landing on the flip of coin, wining twice as much as …